Investment of INR 50 Crores secures expansion for Fincap's MSME lending network, with help from repeat investors Z47 and Lok Capital, along with new arrivals Norinchukin Capital and Alteria Capital.
In a significant development for the Indian micro, small, and medium enterprise (MSME) sector, Seeds Fincap, a Gurugram-based non-banking financial company (NBFC), has secured INR 50 crore in a pre-Series B funding round. The investment was led by existing backers Z47 and Lok Capital, with participation from new investors Norinchukin Capital and Alteria Capital.
Founded in 2021 by Subhash Chandra Acharya and Avishek Sarkar, Seeds Fincap focuses on lending to underserved MSMEs. The company operates on a tech-driven model, combining advanced analytics and end-to-end digital processes to provide customized financial solutions with disciplined credit underwriting and rigorous portfolio monitoring.
Seeds Fincap has disbursed loans exceeding INR 1,000 crore, managing assets over INR 500 crore, and maintaining non-performing assets below 2%. The company serves over 50,000 borrowers, many being first-time formal credit recipients.
The fresh capital will be used to expand Seeds Fincap's branch network, adding 40 more branches to its existing 120 across eight states, particularly targeting regions like Rajasthan, Uttar Pradesh, and Bihar. The capital will also support enhancing technology systems, strengthening risk management infrastructure, and scaling its portfolio and product suite to better serve MSMEs with collateral-free loans.
Rajat Bansal, managing director at Lok Capital, commended Seeds Fincap for combining high-quality credit delivery with deep market penetration and tangible impact. Hiroki Kawabata, Director at Norinchukin Capital, noted Seeds Fincap's ability to remain connected to customers while building scalable systems. Ankit Agarwal, managing partner at Alteria Capital, highlighted Seeds Fincap's deep understanding of customer needs alongside disciplined growth practices.
Anish Patil, vice president at Z47, praised Seeds Fincap's technology-enabled field operations and robust credit underwriting. Investors highlighted Seeds Fincap’s strong asset quality, diversified presence, and transformative impact on entrepreneurs as reasons for doubling down their commitment ahead of a larger planned Series B round.
The fresh capital will accelerate Seeds Fincap's growth ahead of its planned Series B funding round, positioning the company well for continued success in serving the vital MSME sector in India.
- The fresh capital secured by Seeds Fincap in a pre-Series B funding round will be used for expandng its branch network, with plans to add 40 more branches to the existing 120 across eight states.
- Seeds Fincap, a tech-driven NBFC, operates on a model that combines advanced analytics and end-to-end digital processes to provide customized financial solutions with disciplined credit underwriting and rigorous portfolio monitoring.
- Investors commended Seeds Fincap for its ability to combine high-quality credit delivery with deep market penetration and tangible impact, citing strong asset quality, diversified presence, and transformative impact on entrepreneurs.
- Anish Patil, vice president at Z47, praised Seeds Fincap's technology-enabled field operations and robust credit underwriting, while Ankit Agarwal, managing partner at Alteria Capital, highlighted its deep understanding of customer needs alongside disciplined growth practices.
