FinAGG Technologies Raises $11 Million for MSME Financing

New Delhi, Jan 18 (PTI) FinAGG Technologies, engaged in MSME financing space, has raised USD 11 million (over Rs 91 crore) in a funding round co-led by global impact investment manager BlueOrchard and Tata Capital Ltd.

The Series A funding round also saw participation from the Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partners, a release said on Thursday.

Additionally, FinAGG secured capital from Gray Matter Capital through Non-Convertible Debentures (NCDs) to empower women entrepreneurs financially.

The latest funds infusion will be directed towards expanding FinAGG's offline and online presence, enhancing global outreach, and driving product innovation, it added.

"The money that we have raised will go into bringing disruptive changes in this industry. Our Product and Engineering department is currently working on bringing blockchain to an industry which worked on conventional pen and paper underwriting until recently. These new features will help us look at borrowers under a completely different light and make underwriting in this space more meaningful," Nipun Kohli, Co-founder & CEO of FinAGG Technologies, said.

Founded in 2019 by experts in Banking, Supply Chain, and IT, FinAGG swiftly became one of the leading innovators in the MSME cash flow financing space.

"We value FinAgg's tech-driven efficiency and focus on distributor finance access.
Excited about our continued collaboration, we anticipate a fruitful partnership and are committed to supporting FinAgg's next phase of growth," Rajiv Sabharwal, the Managing Director and Chief Executive Officer of Tata Capital, said.

FinAGG Technologies plans to deploy the funds to enhance its phygital presence, amplify global outreach, and fuel innovative product developments, the release added.

"Our collaboration with FinAGG is aimed at enhancing financial service accessibility, propelling growth, and fortifying the resilience of the vulnerable MSME sector in India," Mahesh Joshi, Head of Private Equity Investments - Asia at BlueOrchard, said.