SSA Finserv, an NBFC with its focus on capital needs of MSMEs has successfully raised $3 million from Blue Ashva Sampada Fund for further expansion of its lending operations. The company will be using the raised funds in a phased manner for expanding its presence in tier I and tier II cities and enhance its existing network that will help MSMEs to gain access for their working capital needs.
“The MSME segment forms the mainstay of the economy. The exclusion of a sizeable number of MSMEs from formal lending ecosystems and the credit crunch in the sector has impacted their growth. The investment from Blue Ashva Capital will further reaffirm our commitment to become the preferred financial partner for MSMEs.” said Vikas Agarwal, MD & CEO, SSA Finserv Private Limited.
“The MSME sector in the country is instrumental in generating large-scale employment. We are proud to be associated with SSA Finserv in their mission to help MSMEs scale up their business.” said Satya Bansal, Founder, Blue Ashva Capital.
SSA Finserv was founded in June 2019 by Vikas Agarwal. The NBFC specialises in providing financial solutions through lending programs customized to meet business cash flow needs of MSMEs. The company offers an array of cash flow based loan products to MSMEs like Collateral Free Business Loan, Collateral Backed Business Loan, Finance Against Work Order, Sales Bill Discounting to plug the credit gap for businesses. The NBFC lends Rs. 10 lakhs to Rs. 1 crore to businesses across manufacturing, service and trading segments with a turnover of Rs. 1 crore to Rs. 50 crore.
According to a Reserve Bank of India report, at the end-March 2020, NBFCs have been the largest net borrowers of funds from the financial system4 , of which, more than half of the funds were from SCBs, followed by Asset Management Companies-Mutual Funds (AMC-MFs) and Insurance Companies.