Saarathi Finance Raises Rs 475 Crore Equity Capital

Non-Banking Financial Company (NBFC) Saarathi Finance has announced the successful closure of its inaugural funding round, raising a total of Rs 475 crores.

The round was led by prominent investors, including TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and prominent angels collectively contributing about Rs 350 crore. 

Vivek Bansal and Sunil Daga contributed the rest of the amount. This Series A funding puts Saarathi Finance's value at over Rs 900 crore.

The funding will help Saarathi close the credit gap for small businesses, especially in smaller towns and villages across Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh, supporting inclusive growth across India.

Read also- Agritech Startup GROWiT Raises $3 Million In Series A Round Led By GVFL

"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," said Vivek Bansal, Founder and CEO of Saarathi Finance.

“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." said Gopal Srinivasan, Chairman and Managing Director, TVS Capital Funds.

“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," added Rajat Bansal, Managing Director, Lok Capital.

About Saarathi Finance

Saarathi Finance offers both secured and unsecured loans designed for the specific needs of MSMEs, especially in semi-urban and rural areas. By using technology and understanding local markets, it makes credit more accessible. 

The company also focuses on flexible income checks and quick loan approvals to support entrepreneurs often ignored by traditional lenders.

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.