Sugmya Finance, a Delhi-based non-banking financial company (NBFC), has raised $3 million in a funding round led by its existing investors.
The company’s existing backers include Angelbay, an angel investment network, Kaptable Holdings Private Limited, PolicyBazaar cofounders Alok Bansal, Yashish Dahiya, and Manoj Sharma; Rajesh Singh, managing director of Deltacoin Financial Services; Naveen Kukreja, CEO of PaisaBazaar; Shantanu Jain, managing director of JP Morgan Chase in Singapore; Ujjwal Bhandari, managing director of Google in Singapore, among others.
Sugmya Finance plans to utilise the newly acquired capital to fuel its growth initiatives while ensuring a healthy Capital Adequacy Ratio (CAR). Since its establishment, the company has raised over $10 million from micro venture capital firms and various other investors.
Commenting on the fundraise, Vikas Singh, CEO and cofounder of Sugmya Finance, said, “Our primary goal is to help clients transition from informal credit systems to the formal banking and credit system. This is achieved by continuously upgrading their credit profiles and integrating them into the formal financial ecosystem.”
Sugmya Finance specialises in offering micro, small, and medium enterprises (MSME) loans, microloans, and consumer durable loans, operating through a network of more than 275 branches across India. To date, the company has served over 1.75 lakh active borrowers, disbursing cumulative loans exceeding Rs 1,000 crores since 2020. It had Rs 500 crore in assets under management (AUM) last month, the company said in a statement on Wednesday.
The company operates on a cashless model and provides a wide range of financial services to borrowers from semi-urban, urban, and tier-3 locations in India. It has shown significant growth in its AUM in the last four years and has onboarded over 60 lenders including banks, alternative investment funds, and other financial institutions, according to cofounder Brajmohan Singh.
