Seeds Fincap, a non-bank lender focused on small businesses, raises USD 8.5 million from Lok Capital and Matrix Partners India to expand its lending capabilities and branch network.
Mumbai, Jul 17 (PTI) Non-bank lender Seeds Fincap on Wednesday said it has raised USD 8.5 million (about Rs 70 crore) in funding led by Lok Capital and Matrix Partners India.
The small businesses-focused lender will be using the funds to expand lending capabilities, enhance technological infrastructure, and broaden branch footprint, as per an official statement.
The Gurugram-based company provides secured and unsecured loans of up to Rs 5 lakh, it said, adding that the MSME segment is underserved by the lenders at present, which has created a credit deficit of Rs 8 lakh crore.
"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," Matrix Partners India managing director Vikram Vaidyanathan said.
The 2021-established Seeds has 90 branches in eight states, including Uttar Pradesh, Bihar, Rajasthan, and Haryana. It has disbursed over Rs 600 crore in loans, serving more than 50,000 customers, and expanded its loan book to over Rs 330 crore.
"Our clients range from traders, small kirana shops, owners of micro-manufacturing units, and 9 allied service providers, all of whom play a vital role in India's growth story," its director Rajat Bansal said.
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