Prayaan Capital raises Series A funding led by Peak XV Partners
27 Feb 2026, 11:36 AMThe startup will use the funds for developing a tech-based lending platform and expanding their customer base in India.
Team Head&Tale
Share the story on
MSME financing startup Prayaan Capital has secured Rs 110 crore in its Series A funding round led by Peak XV Partners.
The startup will use the funds for developing a tech-based lending platform and expanding their customer base in India.
Prayaan Capital was founded in 2018 by bankers Madhan Mohan and Akash Chelvam, and registered as a non-deposit taking NBFC in June 2019. The company targets segments not serviced by formal credit institutions such as microfinance companies or banks.
It is a non-banking finance corporation (NBFC) that provides small business loans to the underserved sections of the business community, such as MSMEs. The startup wants to improve financial inclusion in India by expanding access to formal credit.
"Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit. Prayaan Capital is built on the belief that combining deep customer understanding with technology can meaningfully expand access,” said Rangarajan Krishnan, CEO of Prayaan Capital.
The startup had raised seed capital of $1.2 million from Accion Venture Lab in February 2020. The present CEO Kumar Rangarajan acquired a controlling stake in the company recently as Accion exited.
"Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit. Prayaan Capital is built on the belief that combining deep customer understanding with technology can meaningfully expand access,” said Rangarajan Krishnan, CEO of Prayaan Capital.
The startup had raised seed capital of $1.2 million from Accion Venture Lab in February 2020. The present CEO Kumar Rangarajan acquired a controlling stake in the company recently as Accion exited.
Who Reads Us
“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”
“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”
“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”
“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”
“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”
Related News