Saarathi Finance Raises ₹475 Crore to Bridge MSME Credit Gap Across Six Indian States

Saarathi Finance, a newly licensed greenfield Non-Banking Financial Company (NBFC) focused on empowering India's micro, small, and medium enterprises (MSMEs), has successfully raised Rs 475 crore in its inaugural funding round. The Series A funding, which values the company at over Rs 900 crore, was led by TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and prominent angel investors who collectively contributed around Rs 350 crore, with the remaining amount infused by Saarathi's founders Vivek Bansal and Sunil Daga. Saarathi Finance aims to bridge the significant credit gap faced by MSMEs, particularly in underserved semi-urban and rural regions across Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh, by offering secured and unsecured loans through technology-driven solutions and personalized customer engagement. The company emphasizes flexible income assessments and rapid loan processing to make credit more accessible to entrepreneurs traditionally overlooked by formal financial institutions. Leadership highlighted the commitment to inclusive growth and empowering next-generation entrepreneurs, aligning with India's economic development goals. Investors expressed confidence in Saarathi's innovative approach and its potential to become a market leader in micro-enterprise lending.