AxiTrust, a promising fintech startup based in Gurugram, has secured ₹23.5 crore in its seed funding round led by General Catalyst. The funding marks a strong early milestone for the company, which aims to redefine how trust, guarantees, and financial security are built within India’s business ecosystem. With growing interest in digital and insurance-backed alternatives to bank guarantees, AxiTrust is stepping forward to modernise an outdated system that often slows down business operations, especially for smaller companies.
Building a Simple and Smarter Way to Provide Guarantees
AxiTrust focuses on a major problem businesses face today—bank guarantees that require companies to block large amounts of money as collateral. This becomes especially challenging for MSMEs that need capital to grow but end up locking away funds for months. AxiTrust solves this by replacing traditional guarantees with digital surety bonds. These are insurance-backed digital promises that work faster, require no collateral, and reduce the stress of dealing with banks. The startup wants to make sure that companies can access guarantees without slowing down their operations or affecting their cash flow. By offering a paperless and fully digital process, AxiTrust is making financial transactions more transparent and more accessible for everyone, regardless of company size.
Why This Innovation Matters for India’s MSME Sector
The Indian MSME sector is one of the strongest pillars of the economy, yet it continues to face limitations due to traditional financial processes. Bank guarantees, though widely used, often restrict growth because they freeze capital that could otherwise be used for expansion, hiring, or daily expenses. AxiTrust’s solution helps small and mid-sized companies unlock their potential by giving them a smoother, faster, and more flexible alternative. When companies can access guarantees without losing access to their own money, they gain the confidence to take on larger projects, participate in tenders, and grow their operations without financial stress. As more businesses adopt digital surety bonds, the country could see healthier cash flow across industries, leading to stronger competition and overall economic improvement.
The Founders’ Vision for a Modern Trust System
AxiTrust was founded by Aditya Tulsian, Rajeev Chari, and Mukund Daga, who share the vision of building a modern trust architecture for India. They believe that financial guarantees should not be complicated or slow, especially in a country that is rapidly digitalising. Their idea is to create a seamless network where insurers, banks, and businesses interact without friction. By focusing on digital infrastructure, the founders aim to bring reliability, speed, and fairness to a process that has traditionally been difficult and paperwork-heavy. Their long-term mission is to help Indian businesses, especially smaller ones, operate with ease and confidence in a competitive market.
What Comes Next for the Fintech Startup
With its new funding, AxiTrust plans to strengthen its technology platform and expand partnerships across the financial ecosystem. The company aims to increase adoption of digital surety bonds across sectors that rely heavily on guarantees, such as construction, manufacturing, and government contracting. AxiTrust’s platform is expected to bring more transparency and reduce delays, helping businesses complete transactions smoothly. Over time, the company hopes to play a leading role in India’s transition from traditional guarantees to modern digital alternatives. This shift could unlock significant growth opportunities for MSMEs, improve financial access, and support India’s push toward a fully digital economy.