FinAGG Technologies Secures $11 Mn To Drive MSME Credit Solutions

New Delhi, Jan 19 (KNN) FinAGG Technologies, a fintech start-up, has successfully secured USD 11 million in its Series A funding round.

It is a noteworthy milestone in FinAGG’s mission to drive credit solutions for Micro, Small, and Medium Enterprises (MSMEs), reported Inc42.

This funding is co-led by BlueOrchard and Tata Capital Limited, with participation from Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partners.

This substantial capital infusion is earmarked for expanding both offline and online presence, boosting global outreach, and driving innovative product solutions within the MSME credit sector.

Established in 2020 by Nipun Kohli and R. Srinivasan, FinAGG specialises in providing credit solutions to distributors, retailers, and MSMEs integrated into a brand’s supply chain.

Utilising the digital infrastructure of India, the start-up facilitates the on-boarding and underwriting of clients, offering convenient working capital solutions directly to MSMEs.

Kohli said, “The focus is on introducing block chain technology to revolutionise borrower evaluation, bringing a fresh perspective and depth to the underwriting process.”

Notably, strategic collaborations with BlueOrchard, Tata Capital, and SIDBI aim to drive climate insurance penetration, scale business operations, and enable growth through access to cost-effective funds.

Srini Ramki, Co-Founder and CTO, FinAGG Technologies, said, “The funds secured will play a crucial role in expanding our reach pan India.”

According to FinAGG, the untapped potential of the working capital industry in India exceeds USD 7.2 billion, with FinTechs anticipated to dominate, leveraging innovation to simplify the borrowing process.

In the fiscal year 2022-23, the start-up reported audited revenues of Rs 12.8 crore, projecting revenues of Rs 30 crore for FY 2023-24 and a substantial growth expectation to Rs 100 crore for FY 2024-25. FinAGG Technologies is poised to revolutionise MSME credit solutions with this significant funding boost.

(KNN Bureau)