Finodaya Capital, a Madhya Pradesh-based non-banking financial company (NBFC), has successfully raised INR 21.3 crore (USD 2.5 million) in its seed funding round. The investment was led by fintech-focused venture capital firm White Venture Capital, with additional participation from Gemba Capital and a clutch of angel investors./i
A Step Forward in Financial Inclusion
Finodaya Capital, which received its NBFC licence from the Reserve Bank of India (RBI) on 11 April 2025, is on a mission to bridge the credit gap for underserved micro and nano enterprises in India. Founded by former ICICI Bank executives — Lokendra Tomar, Abhitabh Dixit, and Neeraj Biyani — the startup is targeting small businesses that have traditionally been excluded from formal lending ecosystems.
The fresh funding places Finodaya Capital at a post-money valuation of INR 50 crore and comes at a time when India is seeing an uptick in digitisation of property-backed lending services, driven by government initiatives around land record digitisation and public digital infrastructure.
A ‘Phygital’ Model for Scale
Finodaya Capital plans to utilise the funding to operationalise its unique “phygital” strategy — a hybrid of physical and digital infrastructure — to streamline credit underwriting and disbursal. Over the next six months, the company aims to open 15 branches across Madhya Pradesh and is targeting disbursals of INR 50–100 crore by 2026.
The company previously operated as a business correspondent for Utkarsh Small Finance Bank, sourcing and servicing loans on the bank’s behalf. With its NBFC licence now in hand, Finodaya Capital is also exploring co-lending arrangements with other financial institutions to expand its reach and lending capacity.
Vision for Customer-First, Secured Lending
At the heart of Finodaya’s model is a commitment to fair, transparent, and tailored secured credit for micro-entrepreneurs. “Many micro and nano enterprises are trapped in cycles of high-cost borrowing from local moneylenders,” said cofounder Lokendra Tomar in a media statement. “We aim to break that pattern by providing adequate financing and helping them transition into the formal financial system.”
The company also aims to leverage data analytics to deliver customised credit solutions, combining high-tech tools with high-touch customer service.
Backed by Fintech Veterans
White Venture Capital, which led the funding round, was founded by prominent fintech leaders including Amrish Rau (CEO, Pine Labs), Jitendra Gupta (CEO, Jupiter), and angel investor Sweta Rau. While Rau and Gupta serve as limited partners and advisors, Sweta Rau acts as the fund’s general partner.
Commenting on the investment, Sweta Rau said, “We are excited to partner with the Finodaya Capital team in their mission to unlock secured credit for India’s small businesses. Their deep domain expertise, speed of execution, and commitment to combining digital tools with local insight position them well to build a scalable and trusted NBFC.”
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Industry Momentum
The seed round for Finodaya Capital comes amidst heightened activity in the NBFC space. Several startups like TapFin, Kuhoo Finance and Vayana have recently entered the space with strong investor interest and increasing regulatory oversight from RBI. This momentum is a part of a larger trend: digitization of credit infrastructure and expansion of formal lending to underserved sectors.
As Finodaya gears up for the next phase of growth, its entry into the NBFC space will make a tangible impact on small business financing — a segment that is critical to India’s economic growth and stability.