Saarathi Finance, a newly licensed Greenfield Non-Banking Financial Company (NBFC) dedicated to empowering India's micro, small, and medium enterprises (MSMEs), has announced the successful closure of its inaugural funding round, raising a total of ₹475 crores. The capital infusion will support Saarathi's mission to bridge the significant credit gap faced by MSMEs, particularly in underserved semi-urban and rural regions across Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh, underpinning the theme of inclusive growth for Bharat.
The funding round was led by prominent investors, including TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and prominent angels collectively contributing ~ ₹350 crores. Vivek Bansal, Founder and CEO, and Sunil Daga, Co-Founder, infused balance amount underscoring their commitment to the venture. The Series A investment values Saarathi Finance at over ₹900 crores.
Vivek Bansal, Founder and CEO, Saarathi Finance, stated: “We are committed to empowering Bharat’s entrepreneurs by providing more than just credit – a partnership that values and supports their growth. This funding milestone enables us to accelerate our mission, ensuring every stakeholder, from entrepreneurs to investors, is valued and cared for in our journey. With heartfelt gratitude to our stakeholders, friends, and family, we embark on this exciting journey. ”
Gopal Srinivasan, Chairman and Managing Director, TVS Capital Funds commented: “Saarathi Finance embodies the spirit of inclusive growth that aligns with our vision of supporting micro and nano businesses crucial to India's journey towards a $10 trillion economy. Their focus on MSMEs in underserved regions resonates with our commitment to empowering next-generation entrepreneurs who are the backbone of India's economic development.”
Rajat Bansal, Managing Director, Lok Capital stated: “We have been a part of the evolving secured micro- enterprise lending space for over a decade now, and see innovation and capital emerging as serious moats. We are excited to partner with Saarathi as the next generation of market leaders in this space.”
Abhishek Chandra, Partner, Evolvence Equity Partners said: “We are strong believers in Saarathi’s mission to bridge the large credit gap for underbanked MSMEs in India. With an exceptional founding team and the right capital support, Saarathi is well positioned to build a high-quality, enduring lending franchise. We’re excited to partner with them on this journey.”
Siddharth Parekh, Senior Partner and Co-Founder, Paragon Partners commented: “We are thrilled to partner with Saarathi Finance at the very start of their journey, as they address the significant unmet demand for credit among India’s MSMEs. With Vivek Bansal’s proven leadership at InCred and Sunil Daga’s deep experience in secured lending at Kotak Bank, Saarathi has built a high-calibre team poised to drive financial inclusion. We are bullish on the MSME secured LAP segment and believe Saarathi is uniquely positioned to unlock its vast potential in India.”
Saarathi Finance's approach combines technology-driven solutions with personalized customer engagement, offering both secured and unsecured loans tailored to the unique needs of MSMEs. The company's emphasis on flexible income assessment and rapid loan processing aims to make credit more accessible to entrepreneurs who have traditionally been overlooked by formal financial institutions.
About Saarathi Finance
Saarathi Finance & Credit Pvt Ltd. is an NBFC focused on providing accessible and tailored credit solutions to MSMEs across semi-urban and rural India. With a mission to bridge the ₹44 lakh crores credit gap in the MSME sector, Saarathi combines technological innovation with a deep understanding of local markets to offer loans that meet the unique needs of small business owners. The company operates with the guiding principle: "Aap Akele Nahi Hai"- You are not alone.
