Big boost to India’s rural entrepreneurship Saarathi Finance, a new age Greenfield Non-Banking Financial Company (NBFC) has raised INR 475 crore in its first equity funding. Founded in 2024 and headquartered in Mumbai, the company is led by Vivek Bansal, former CFO of InCred Group and Sunil Daga, former President at Kotak Mahindra Bank.
The Series A was led by TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners and a group of angel investors. The external investors put in around INR 350 crore and the rest was from the founders themselves—a sign of strong promoter conviction and long term commitment.
The company is valued at over INR 900 crore.
A Mission-Driven Model for Bharat’s MSMEs
Saarathi Finance’s core mission is to bridge the huge credit gap faced by India’s micro, small and medium enterprises (MSMEs) especially those in semi-urban and rural areas. The NBFC is targeting entrepreneurs in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan and Uttar Pradesh—states with high MSME activity but limited formal financial infrastructure.
According to the company, the fresh capital will be used to scale up its technology led lending platform, build a book of secured and unsecured loans and expand its physical and digital presence across its target geographies.
The firm emphasizes a combination of tech-enabled underwriting, flexible income assessment models, and rapid processing—geared towards making capital accessible for first-generation entrepreneurs who are often excluded from traditional banking frameworks.
“Our goal is to offer more than just loans. We aim to be long-term partners in growth for Bharat’s entrepreneurs,” said Vivek Bansal, Founder and CEO of Saarathi Finance. “This funding helps us move faster. Thanks to our investors, family and well-wishers for their continued support as we scale.”
High-Conviction Investors
The investor community is very positive on Saarathi’s strategy and team.
Gopal Srinivasan, Chairman and Managing Director of TVS Capital Funds, said, “Saarathi Finance is the embodiment of inclusive growth that aligns perfectly with our philosophy of supporting micro and nano businesses—engines of India’s growth to a USD 10 trillion economy.”
Rajat Bansal, Managing Director at Lok Capital, said, “With over a decade of experience in secured micro-enterprise lending, we see Saarathi as a game changing innovator to lead the next wave of MSME financing.”
Abhishek Chandra, Partner at Evolvence Equity Partners, said, “Strong founding team and strategy, Saarathi is well positioned to build a high quality, enduring lending franchise.”
Siddharth Parekh, Senior Partner and Co-Founder of Paragon Partners, said: “Vivek Bansal and Sunil Daga bring complementary strengths from InCred and Kotak Mahindra Bank respectively. Saarathi is targeting a big gap in secured lending for MSMEs and we are very positive on the opportunity.”
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Addressing an INR 44 Lakh Crore Credit Gap
Industry estimates put India’s MSME credit gap at a whopping INR 44 lakh crore. Despite contributing 30% to the country’s GDP and employing over 110 million people, MSMEs are chronically credit starved due to rigid income documentation norms, lack of financial literacy and no digital history.
Saarathi Finance is designing its products for this segment, with customized loan structures and alternative data for risk assessment. The company’s lending products are secured loans (like loan against property) and unsecured business credit solutions.
With its tagline Aap Akele Nahi Hai (You are not alone), Saarathi will provide entrepreneurs not just capital but empathy, support and partnership.
Looking Ahead
As the NBFC gets ready to operationalize its capital infusion, the impact of Saarathi Finance’s strategy will be felt across the length and breadth of India—where credit starved entrepreneurs are waiting for their first financial partner.
For a country where MSMEs are being recognized as engines of inclusive growth, Saarathi Finance’s entry is timely and critical. With strong investor backing, great leadership and a grounded mission, the company is all set to be a big player in India’s next phase of financial inclusion.