Svakarma Finance Raises $10.4M Funding

Svakarma Finance is a Mumbai-based lender to MSMEs based on deep customer engagement has raised $10.4 million (Rs 88 crore) through a mix of debt and equity round led by the existing institutional investors, including Encourage Capital. 

Svakarma Finance has also signed an agreement for up to $8 million in long-term funding from the US International Development Finance Corporation to support financial inclusion for micro-enterprises in India.

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Purpose of Fund Raising

The company will use the funds to expand its branches, add more products, and grow its lending portfolio. It plans to increase its presence to nearly 50 cities, up from 20, and serve over 30,000 micro-enterprises in the next three years.

Founded in 2017, Svakarma Finance is a Mumbai-based lender that provides loans to underserved MSMEs, with over 5,000 customers. Its current loan portfolio is around Rs 210 crore, and the company aims to increase it to Rs 1,500 crore in the next three years.

In May 2023, Encourage Capital, a U.S.-based investment firm, acquired a minority stake in Svakarma Finance Private Limited as part of the first phase of a total investment of up to US$ 9 million.

About Svakarma Finance

Svakarma Finance is a company focused on making a positive impact. It supports Micro, Small, and Medium Enterprises (MSMEs) and aims to create lasting changes in the lives of its customers. Based in Mumbai, They have branches in Maharashtra, Gujarat, and Tamil Nadu. Their goal is to help entrepreneurs by making capital and knowledge more accessible to them.

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