Saarathi Finance Raises Rs 475 Crores to Strengthen Credit Access for India’s MSMEs
Saarathi Finance, a recently licensed Non-Banking Financial Company (NBFC), has raised Rs 475 crores in its maiden funding round to accelerate access to formal credit for India’s micro, small, and medium enterprises (MSMEs). The move marks a promising beginning for the fintech startup, which aims to bridge the persistent credit gap for small businesses across semi-urban and underserved regions of the country.
The Series A round saw enthusiastic backing from prominent investors, including TVS Capital Funds, Lok Capital, Evolvence Equity Partners, and Paragon Partners, along with a group of angel investors. Collectively, they infused nearly Rs 350 crores into the company. Saarathi’s co-founders, Vivek Bansal and Sunil Daga, contributed the remaining Rs 125 crores, signalling strong promoter conviction in the company’s long-term vision. With this round, Saarathi has secured a valuation of over Rs 900 crores.
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Saarathi Finance’s core mission is to empower MSMEs especially those operating in Tier 2 and Tier 3 cities by making formal credit more accessible and relevant. The company plans to channel this fresh capital to expand its footprint in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh, reaching business owners who are often excluded from traditional banking networks.
“We are not just building a lending company. We are building a trusted partner for entrepreneurs who have long struggled to get the financial support they deserve,” said Vivek Bansal, Founder and CEO of Saarathi Finance.
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Saarathi Finance blends technology with a human-first approach, offering both secured and unsecured business loans tailored to diverse needs. Using alternative credit assessment models and flexible documentation processes, Saarathi makes it easier for small businesses often lacking formal income proof to access funding quickly and efficiently.
Loan products are designed keeping in mind the real-life needs of micro and nano enterprises. From working capital loans to growth financing, the NBFC aims to support business journeys with agility and empathy.
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Gopal Srinivasan, Chairman and MD of TVS Capital Funds, noted, “India’s growth story is powered by its small entrepreneurs. Saarathi Finance’s deep focus on micro and nano enterprises aligns well with India’s vision of becoming a $10 trillion economy. We are excited to back a mission with such transformative potential.”
With regulatory approvals in place and a clear roadmap, Saarathi Finance is now gearing up to scale operations, hire key talent, and deepen its reach across India’s MSME ecosystem.
As formal credit continues to be a critical barrier for growth in the MSME segment, Saarathi Finance’s entry into the space comes at a time when financial inclusion is more important than ever.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
