Non-banking financial company (NBFC) Seeds Fincap has raised over $8.5 million in a Series A funding round led by Lok Capital and Z47 (formerly Matrix Partners India).
The funds will enable the Gurugram-based firm to expand its lending capabilities, enhance technological infrastructure and broaden its branch footprint, according to a statement on Wednesday.
“At Seeds Fincap, we’ve developed a unique credit evaluation framework supported by a tech-enabled sourcing-to-collections process designed to empower enterprises with tailored financial solutions. Our partnership with investors, Matrix Partners India and Lok Capital, signifies a shared dedication to unlocking the immense potential within the MSME segment,” said Subhash Acharya, managing director and cofounder of Seeds Fincap.
Founded in 2021 by Acharya and Avishek Sarkar, Seeds Fincap provides secured and unsecured loans to micro, small and medium enterprises (MSMEs) ranging from Rs 1 lakh to 5 lakh in ticket size. The company employs a credit assessment process to evaluate cash flows and offer appropriately priced loans.
Seeds Fincap said it has a network of 90 branches across 8 states, with a significant presence in Uttar Pradesh, Bihar, Rajasthan and Haryana. It has disbursed over Rs 600 crore in loans over three years, serving more than 50,000 customers, and has expanded its loan book to over Rs 330 crore.
The NBFC has also built a diversified liability base with over 35 lending partners, including AU Small Finance Bank, Tata Capital, IDFC Bank, Yes Bank and Vivriti Capital.
“MSME credit represents a massive opportunity in India as we scale towards becoming a $10 trillion economy and is essential to that goal. Our thesis is to invest in high-quality businesses serving this segment with tailored “right-tech”, contextual credit products, especially in underserved geographies like north and central India,” said Vikram Vaidyanathan, managing director, Z47.
