Seeds Fincap Raises USD 8.5M For Lending To Small Businesses

ENA MSME 2024-07-18 15:18:08 New Delhi, Jul 18 (KNN) Seeds Fincap, a non-bank lender focused on small businesses, has announced the successful completion of a funding round, raising USD 8.5 million. The investment was spearheaded by Lok Capital and Matrix Partners India. The Gurugram-based company, established in 2021, plans to utilise the funds to expand its lending capabilities, enhance its technological infrastructure, and broaden its branch network. Seeds Fincap currently operates 90 branches across eight states, including Uttar Pradesh, Bihar, Rajasthan, and Haryana. Specialising in secured and unsecured loans of up to Rs 5 lakh, Seeds Fincap aims to address the significant credit deficit in the MSME sector, estimated at Rs 8 lakh crore. The company has already disbursed over Rs 600 crore in loans, serving more than 50,000 customers, and has expanded its loan book to exceed Rs 330 crore. Vikram Vaidyanathan, Managing Director, Matrix Partners India, commented on the investment, stating, Our thesis is to invest in high-quality businesses serving this segment with tailored 'right-tech', contextual credit products, especially in underserved geographies like North and Central India. Seeds Fincap's client base includes traders, small kirana shops, owners of micro-manufacturing units, and allied service providers. Rajat Bansal, Director, Seeds Fincap, emphasised the vital role these businesses play in India's economic growth. This funding round underscores the growing interest in financial institutions catering to the underserved MSME sector in India, particularly in regions that have historically faced challenges in accessing formal credit. (KNN Bureau) 38644 https://knnindia.co.in/news/newsdetails/msme/seeds-fincap-raises-usd-85m-for-lending-to-small-businesses 2024-07-18 15:18:08 knnindia.co.in Seeds Fincap Raises USD 8.5M For Lending To Small Businesses