Saarathi Finance, a newly licensed Non-Banking Financial Company (NBFC), has made a significant entry into India’s financial services sector by raising ₹475 crores in its debut funding round. This substantial capital infusion is aimed at empowering micro, small, and medium enterprises (MSMEs) across the country, particularly those in underserved and semi-urban regions, by enhancing their access to formal credit.
The funding round saw robust participation from leading investors such as TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and a consortium of angel investors, who together contributed approximately ₹350 crores. The remaining amount was invested by Saarathi’s co-founders, Vivek Bansal and Sunil Daga, demonstrating their strong belief in the company’s mission and long-term vision. The Series A round has valued Saarathi Finance at over ₹900 crores, positioning it as a formidable new player in the MSME lending space.
Saarathi Finance’s core mission is to bridge the significant credit gap that persists for MSMEs, especially in regions where traditional banking services often fall short. The company plans to deploy the fresh capital to reach entrepreneurs in states such as Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh. By focusing on these areas, Saarathi aims to drive inclusive economic growth and support the aspirations of business owners who have historically struggled to access formal financial services.
Founder and CEO Vivek Bansal emphasised that Saarathi Finance is committed to building more than just a lending platform. The company seeks to form genuine partnerships with entrepreneurs, offering tailored financial solutions that go beyond conventional credit. Saarathi’s approach combines advanced technology with a personalised touch, providing both secured and unsecured loans that are customised to the diverse needs of MSMEs. By leveraging flexible income assessment models and rapid loan processing, Saarathi makes it easier for business owners, often overlooked by mainstream banks, to secure the funding necessary for growth and expansion.
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The investor community has expressed strong confidence in Saarathi Finance’s leadership and innovative approach. Gopal Srinivasan, Chairman and Managing Director of TVS Capital Funds, highlighted that Saarathi’s focus on micro and nano enterprises aligns with India’s broader economic ambitions, including the goal of becoming a $10 trillion economy.
