Chennai-based fintech startup GrowXCD Finance has successfully raised ₹200 crore in its latest funding round, marking a significant milestone in its journey to support micro, small, and medium enterprises (MSMEs) across southern India. The funding round drew participation from a mix of seasoned investors, including Swiss impact investment firm Blue Earth Capital, which contributed ₹105 crore, Prosus Ventures with ₹70 crore, existing investor Lok Capital with an additional ₹21 crore, and UC Impower with ₹4 crore. This infusion of capital positions GrowXCD Finance to accelerate its growth and expand its footprint in underserved markets.
Accessible Credit for All
Founded in January 2022 by Arjun Muralidharan, GrowXCD Finance operates as a non-banking financial company (NBFC) with a clear focus: providing accessible credit solutions to small businesses and low-income households. The company currently operates more than 60 branches across Tamil Nadu, Karnataka, Andhra Pradesh, and Puducherry, serving entrepreneurs and salaried individuals in tier-II and tier-III towns. By offering small-ticket loans and financial products tailored to local needs, GrowXCD has positioned itself as a trusted partner for businesses that often face challenges accessing traditional banking services. The company aims to reduce financial friction and provide timely support so that small business owners can focus on growth and operational efficiency.
Boosting Digital Infrastructure
The ₹200 crore funding will be deployed across multiple strategic initiatives to strengthen GrowXCD Finance’s operations and outreach. A major focus will be on expanding its branch network, with plans to open 40 to 50 new branches by March 2027, including potential entry into markets like Madhya Pradesh, Maharashtra, and Uttar Pradesh. Another key area of investment is technology. GrowXCD plans to enhance its digital infrastructure to streamline loan processing, simplify customer onboarding, and improve overall service delivery. Finally, the company aims to increase its assets under management from ₹300 crore to ₹500 crore by March 2026. These steps are expected to make financial services more accessible, efficient, and inclusive for small businesses across India.
Innovation Meets Accessibility
Arjun Muralidharan emphasized that the funding is not just about business growth but also about creating meaningful economic impact. By providing timely and affordable credit, GrowXCD Finance enables small businesses to expand, hire more staff, and contribute to local economies. The company’s approach reflects a broader trend among investors to support financial inclusion and sustainable development in India. In addition, the focus on technology and customer experience ensures that even businesses in smaller towns can access reliable financial services without unnecessary delays or paperwork. This blend of innovation, expansion, and social impact is central to GrowXCD’s vision of building a more inclusive financial ecosystem.
Bridging India’s Credit Gap
With a solid funding base, a clear growth roadmap, and a commitment to serving underserved markets, GrowXCD Finance is well-positioned to bridge the credit gap for small businesses in India. Its focus on leveraging technology, expanding its branch network, and providing accessible loans places it among the emerging leaders in the fintech sector. As India’s economy continues to grow and the need for inclusive finance becomes more critical, GrowXCD Finance is likely to play a pivotal role in empowering small businesses and driving sustainable economic development across the country.