Saarathi Finance Raises ₹475 Cr to Empower India’s Small Entrepreneurs
In a big boost for small business owners across India, Saarathi Finance, a new-age NBFC (non-banking financial company) focused on MSME lending, has successfully raised ₹475 crore in its first-ever Series A funding round.
Co-founded by industry veterans Vivek Bansal (former CFO of InCred Group) and Sunil Daga (former President at Kotak Mahindra Bank), Saarathi Finance is setting out with a bold mission: to uplift micro and nano entrepreneurs in rural and semi-urban India by giving them access to the credit they need — and deserve.
Who’s Backing Them?
This impressive funding round has attracted investment from big names like TVS Capital Funds, Lok Capital, Evolvence India, Paragon Partners, and a few well-known angel investors. The money will be used to provide small business loans across Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh — states where many entrepreneurs still struggle to access formal credit.
A Mission Beyond Money
“We’re not just here to give out loans,” said Vivek Bansal, co-founder and CEO of Saarathi Finance.
“We want to be true partners to Bharat’s entrepreneurs — supporting their dreams, growth, and long-term success. This funding helps us move faster toward that mission.”
The Journey So Far
Back in September 2024, Moneycontrol had exclusively reported that Bansal and Daga were preparing to launch a new NBFC focused on MSME lending while still wrapping up their previous roles. At the time, they were looking to raise ₹600 crore in equity at a projected valuation of ₹1,000 crore.
Fast forward to now: Saarathi Finance is officially live and kicking, having closed its Series A with a valuation of over ₹900 crore — a strong start for a company still in its early days.
Why This Matters
In India, small entrepreneurs often form the backbone of local economies — especially in rural and tier-2/tier-3 towns — but they’re often left behind by traditional banking systems. Saarathi Finance aims to bridge that gap, not just by lending money, but by building trust-based, long-term relationships with these business owners.
With fresh capital, experienced leadership, and a strong commitment to inclusive growth, Saarathi Finance seems well-positioned to become a true financial companion for “Bharat’s” next generation of changemakers.