MSME lender Saarathi Finance raises Rs 350 crore in funding

29 May 2025, 04:05 PM

TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and other angels collectively invested about Rs 350 crore in the NBFCs.

Team Head&Tale

Non-Banking financial company (NBFC) Saarathi Finance, which offers secured and unsecured loans to micro, small and medium enterprises, has raised Rs 350 crore in funding round, at a valuation of about Rs 900 crore.

The round was co- led by TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and other angels collectively contributing about Rs 350 crore. In addition, the company's co-founders Vivek Bansal and Sunil Daga also invested about Rs 125 crore in this round. 

The funding will be utilized to support the company's aim to bridge the significant credit gap faced by MSMEs, particularly in underserved semi-urban and rural regions across Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh.

“We are committed to empowering Bharat’s entrepreneurs by providing more than just credit – a partnership that values and supports their growth. This funding milestone enables us to accelerate our mission, ensuring every stakeholder, from entrepreneurs to investors, is valued and cared for in our journey. With heartfelt gratitude to our stakeholders, friends, and family, we embark on this exciting journey,” said Vivek Bansal, founder and CEO of Saarathi Finance.

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