New Delhi, Apr 2 (KNN) Namdev Finvest has secured USD 19 million in pre-Series C funding to drive its expansion into rural geographies and boost lending to underserved micro, small and medium enterprises (MSMEs). The funding round was led by Danish private equity firm Maj Invest Financial Inclusion Fund III K/S.

Established in 2013 by Jitendra Tanwar, its Managing Director and CEO, Namdev Finvest focuses on providing credit to populations with limited income and credit histories in rural and semi-urban areas across seven northwestern states of India.

"This fresh round of funding will enable us to extend our reach into newer rural markets," said Tanwar. Namdev's product suite includes tailored business loans for MSMEs as well as green finance solutions like e-mobility and solar energy loans.

Through its network of over 100 branches, the NBFC has disbursed more than 50,000 loans in the range of Rs 4 lakh to Rs 7 lakh, primarily aimed at income generation activities. Its assets under management have exceeded Rs 1,120 crore.

"We are eager to support Namdev's successful track record by leveraging their tech-driven underwriting capabilities and cost-effective liability model," commented Siva Vadivelazhagan, Director, Maj Invest Financial Inclusion.

Maj Invest, a Danish asset management firm with USD 12 billion in assets, offers services across asset management and private equity verticals.

In addition to Maj Invest, Namdev's list of investors includes Incofin India Progress Fund, BII and LHC. The company has forged collaborations with over 44 lenders spanning public sector banks, private banks, small finance banks as well as international and domestic financial institutions.

The NBFC's fundraise comes at a time when MSME lending in rural and semi-urban regions is witnessing an uptick.

A key driver behind this rural MSME lending growth has been the improvement in their credit risk profiles. The proportion of high-risk MSMEs reduced to 13 per cent in the third quarter from 15 per cent in the year-ago period.

Furthermore, gross non-performing assets (NPAs) in the overall MSME sector declined by 14.3 per cent to Rs 1.31 lakh crore in FY23 from Rs 1.54 lakh crore in FY22, as per data shared by the Minister of State for MSME in the Rajya Sabha.

(KNN Bureau)