Seeds Fincap Secures $8.5 Million Funding, Eyes Expansion

Non-bank lender Seeds Fincap has raised USD 8.5 million in funding led by Lok Capital and Matrix Partners India. The company plans to use the funds to expand lending capabilities, enhance technological infrastructure, and increase its branch footprint. It focuses on providing loans to underserved small businesses.

Non-bank lender Seeds Fincap announced on Wednesday that it has successfully secured USD 8.5 million (approximately Rs 70 crore) in a funding round led by Lok Capital and Matrix Partners India.

According to an official statement, the company will utilize the new capital to boost its lending capabilities, upgrade its technological infrastructure, and expand its branch network.

Based in Gurugram, Seeds Fincap offers both secured and unsecured loans up to Rs 5 lakh, primarily targeting the underserved MSME segment, which currently faces a credit gap of Rs 8 lakh crore.

'Our investment approach focuses on high-quality businesses with innovative 'right-tech' and contextual credit products, especially in underserved regions like North and Central India,' said Vikram Vaidyanathan, Managing Director at Matrix Partners India.

Founded in 2021, Seeds Fincap already operates 90 branches across eight states, including Uttar Pradesh, Bihar, Rajasthan, and Haryana. The company has disbursed over Rs 600 crore in loans to more than 50,000 customers, and its loan book has grown to over Rs 330 crore.

'Our clients include traders, proprietors of small kirana shops, micro-manufacturing unit owners, and various allied service providers, all of whom contribute significantly to India's economic growth,' said Rajat Bansal, Director of Seeds Fincap.

(With inputs from agencies.)