Bengaluru-based fintech startup axiTrust, which issues and manages digital surety bonds as an alternative to collateral-heavy bank guarantees, is in talks to raise about $5 million in what appears to be its Series A round, according to a report by Inc42 citing people aware of the matter.
The round is expected to be led by Singapore-based Argor.vc, with existing investor General Catalyst also participating. The company had not commented on the report at the time of its publication, and the round has not been formally announced.
A year after its seed round
The proposed raise comes roughly a year after axiTrust secured $2.6 million in a seed round led by General Catalyst. Atrium Angels, YAN Network and Supermorpheous are also among its backers. The fresh capital is expected to go into building digital infrastructure that can speed up adoption of its surety bond products.
What surety bonds solve
A surety bond is an insurance-backed guarantee that assures a buyer or project owner that a business will meet its contractual obligations. In India, contractors and suppliers have traditionally relied on bank guarantees for this, which often require them to park cash or other collateral with the lender. That locks up working capital that could otherwise fund operations and growth.
With a surety bond, the business pays a premium to an insurer for the guarantee instead of blocking collateral. For MSMEs, infrastructure contractors and vendors working on government and large corporate projects, that can free up liquidity and ease pressure on credit lines.
The Government of India has encouraged surety bonds as an accepted alternative to bank guarantees in public procurement, and IRDAI has put in place guidelines for insurers to underwrite them. Even so, adoption has been slow, partly because issuance, underwriting and verification remain largely manual. Digital-first players like axiTrust are betting that technology can make the product faster to issue, easier to verify and simpler for beneficiaries to accept.
About axiTrust
axiTrust was founded in 2024 by Aditya Tulsian (CEO), Rajeev Chari (COO) and Mukund Daga (CRO). The company issues, underwrites and manages digital surety bonds in partnership with insurers, positioning itself as an insurtech layer between businesses that need guarantees and the insurers that back them.
Why it matters for BFSI
Investor appetite for Indian fintech has become more selective in 2026, with Tracxn data showing funding rising to $2.2 billion in January to September even as the number of rounds fell sharply. Against that backdrop, specialised infrastructure plays that unlock working capital for small businesses continue to draw interest. If axiTrust closes the round, it would add to a growing set of startups trying to bring guarantee and trade-finance products into a fully digital workflow, an area that touches banks, insurers and the MSME credit ecosystem alike.
Source: Inc42 report dated 26 October 2026. Funding details are based on people aware of the matter and are subject to change until the company confirms the round.
