/viestories/media/media_files/2025/11/26/axitrust-raises-rs-23-crore-in-seed-round-led-by-general-catalyst-2025-11-26-08-49-28.png)
Fintech startup AxiTrust has raised Rs 23.5 crore in a seed funding round led by General Catalyst.
The round also saw participation from Atrium Angels, YAN Network, and Supermorpheous.
Read also- From Student Engineers to Space-Tech Trailblazers: The GalaxEye Story
“Most bank guarantees in India are collateralised. India, like many emerging economies, is a lower-trust and lower-credit market. If businesses are blocking their most valuable asset (collateral) to issue guarantees, it’s a double whammy for them,” cofounder Aditya Tulsian said.
He said the total risk covered by surety bonds increased from Rs 5,000 crore in April 2024 to Rs 60,000 crore in September 2025.
Surety bonds are insurance-backed options that work like bank guarantees but don’t require MSMEs to provide collateral.
Surety bonds were officially allowed after Irdai’s 2022 guidelines and changes to the General Financial Rules, but they still haven’t been widely used. The company says MSMEs have more than Rs 15 lakh crore of working capital tied up as collateral for bank guarantees.
/viestories/media/media_files/2025/08/07/gift_ads_01-2025-08-07-16-54-28.jpg)
“AxiTrust is addressing a fundamental gap in India’s financial ecosystem — the need for a scalable trust infrastructure for MSMEs,” said Aakanksha Sharma, principal at General Catalyst.
About axiTrust
Founded in 2024 by Tulsian, Rajeev Chari, and Mukund Daga, Mumbai-based fintech startup axiTrust offers micro surety bonds to micro, small and medium enterprises (MSMEs).
It works with companies like New India Assurance, Oriental Insurance, and Iffco-Tokio General Insurance.
Want to go deeper into the world of startups and entrepreneurship? Check out these categories on VIESTORIES:
Latest Business and Startup News: Discover Funding Trends and Stories Shaping Indian Startups.
Startup Funding News: Your Gateway to Every Funding Update.
Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.
Startup Stories: Discover inspiring tales of startups overcoming challenges, and achieving success.
