Rural Lending Startup GrowXCD raises Rs 200 Cr led by Blue Earth Capital

Chennai-based GrowXCD Finance, a startup lender to small businesses, has raised Rs 200 crore from Swiss impact investment firm Blue Earth Capital and Amsterdam Stock Exchange-listed Prosus Ventures.

Blue Earth Capital led the funding round, investing Rs 105 crore, while Prosus put in Rs 70 crore, the company said.

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This is GrowXCD’s second equity raise this year. In January, it raised Rs 50 crore from Lok Capital and UC Impower. Lok Capital which first invested in November 2023, added Rs 21 crore while UC Impower contributed Rs 4 crore. Lok Capital’s total investment in GrowXCD now stands at Rs 93 crore, making it the largest shareholder.

"The capital infusion will mostly help us in expanding our portfolio and branches, besides improving the technology backbone,"  Founder and managing director, Arjun Muralidharan, said. "This capital will be good for the next 12-18 months of business."

"We plan to open 40-50 branches by March 2027. We will also explore geographical expansion in states like Madhya Pradesh, Maharashtra or maybe Uttar Pradesh," he added.

"India’s MSMEs form the backbone of our economy yet remain significantly underserved on credit, said Gaurav Kothari, principal investor, Prosus India. "With rapid digital adoption, greater formalization and supportive government initiatives, we see a massive opportunity to build tech-led lending solutions for this segment."

Launched in 2022, GrowXCD provides loans to MSMEs and salaried employees in tier-II and tier-III towns across southern India. It operates 67 branches in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana and Puducherry. The company plans to grow its AUM from ₹300 crore to ₹500 crore by March 2026.

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