Saarathi Finance, a Non-Banking Financial Company (NBFC), has raised ₹475 crore in its Series A funding round at a valuation of ₹900 crore.
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 the balance amount underscoring their commitment to the venture.
The funds raised will be used 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.
Founded in 2024 by Vivek Bansal and Sunil Daga, Saarathi Finance is a Greenfield NBFC that focuses on providing accessible and tailored credit solutions to MSMEs across semi-urban and rural 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.
Vivek Bansal, Founder and CEO, Saarathi Finance, said, “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, “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 said, “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 said, “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.”
