GrowXCD Finance has secured Rs 50 crore in a series A funding round led by Lok Capital, of which the first tranche of Rs 30 crore has been closed. Throughout the following 12 to 18 months, GrowXCD Finance intends to use the funding to hire its first staff, create new technologies, and broaden its reach.
GrowXCD Finance wants to increase people’s access to financing in tier-2 and tier-3 locations by utilizing technology in previously untested ways.
“This investment and partnership will provide the launch pad for GrowXCD to build a robust organisation which will serve the mission to accelerate the economic development of MSMEs and low-income households in the rural and semi-urban locations,” GrowXCD CEO Arjun Muralidharan said in a statement.
“We have known Arjun for many years and are delighted to partner with him to build a leading financial institution from the ground up. We understand the MSME lending space in the country well, and believe that together we have the opportunity to create a differentiated business in the secured MSME space,” said Venky Natarajan, managing partner, Lok Capital.
About GrowXCD Finance
GrowXCD was founded in January 2022 by Arjun Muralidharan. It is an RBI-registered Non-Banking Finance Company that presently operates from six branches located in Tamil Nadu. GrowXCD aspires to accelerate the economic growth of MSMEs and low-income households by enabling them to access capital. The company’s main focus is on developing credit infrastructure that enables institutional capital to seamlessly flow into retail assets secured by mortgages. By building these credit rails, GrowXCD aims to facilitate the efficient allocation of funds and promote economic development in the target segments.