Chennai-based neobanking startup Kaleidofin has raised USD 5.3 million (~INR 45 crore) in equity funding from IDH Farmfit Fund, a blended finance impact fund focused on smallholder farmer value chains. This latest tranche takes Kaleidofin’s ongoing funding round to USD 19 million (~INR 161 crore), which will help the company scale financial services in agriculture and informal markets.
Investor Backing and Total Funding
This funding follows a USD 13.8 million (~INR 117 crore) investment announced in September 2024, led by Rabo Partnerships and with returning investors including Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India and Flourish Ventures. Kaleidofin has now raised USD 42 million (~INR 355 crore) since its inception in 2017.
Targeted Financial Solutions for Smallholder Farmers
A key focus of this funding round is the development and expansion of Ki Score Agri, a credit health assessment tool for agricultural borrowers. This is part of Kaleidofin’s joint strategy with IDH Farmfit Fund to design customised, data-driven financial products for underserved segments like dairy farmers, agri-allied businesses and climate-resilient farming.
“Smallholder farmers are an important part of the economy but they are vastly underserved by formal financial services,” said Sucharita Mukherjee, Co-founder and CEO, Kaleidofin.
Read Also: Sedna Raises INR 50 Cr from Anicut Capital to Disrupt B2B Hospitality Supply Chains
Scaling Technology and Credit Infrastructure
The fresh funds will be used to scale the lending portfolio, enhance credit scoring mechanisms and expand middleware and risk infrastructure. Kaleidofin will increase efficiency and reduce underwriting costs through its proprietary credit analytics and digital platform.
Strategic Partnership for Impact
Som Toohey, Investment Director at IDH Investment Management, emphasised the potential of this partnership:
“Enhanced underwriting and tailoring of smallholder farmer loans, coupled with more efficient origination and distribution, can catalyse the flow of appropriate credit to this underserved segment.”
Mission to Democratise Finance
Founded by former IFMR Holdings executives Sucharita Mukherjee and Puneet Gupta, Kaleidofin delivers inclusive financial solutions through a “click and brick” model. It blends online services with a wide network of offline partners, including banks, NBFCs, MFIs, and NGOs. The company currently operates across 230 districts in 14 Indian states.
Read Also: Space-tech Startup SatLeo Labs Bags INR 28 Cr in Fresh Funding led by Merak Ventures
Impact to Date and Product Offerings
Since 2020, Kaleidofin has enabled over USD 4.5 billion (~INR 38,059 crore) in debt capital to more than 7 million low-income customers and microenterprises. Its core products include:
- KaleidoGoals: Goal-based savings and investments
- KaleidoPay: Digital and recurring payments for non-UPI users
- Ki Score: AI-based credit health tool
- KaleidoCredit: Lending and capital market integrations
Read Also: Piramal Alternatives Invests INR 160 Cr in Sai Mirra Innopharm
Standing Out in a Crowded Neobank Market
Competing with major neobanks like Jupiter, EpiFi, and Niyo, Kaleidofin’s clear focus on the informal sector and rural reach distinguishes it in a fintech market expected to grow to USD 2.1 trillion by 2030. With a vision to reach 600 million underbanked Indians, the company is poised to play a pivotal role in the next wave of financial inclusion.