Seeds Fincap Secures $8.5 Million Funding to Bolster MSME Lending

Seeds Fincap, a non-bank lender, announced the successful raise of USD 8.5 million in funding, led by Lok Capital and Matrix Partners India. The funds will be utilized to expand its lending capabilities, tech infrastructure, and branch network, focusing on underserved MSMEs in North and Central India.

Non-bank lender Seeds Fincap has successfully raised USD 8.5 million (approx Rs 70 crore) in funding, spearheaded by Lok Capital and Matrix Partners India.

The Gurugram-based firm, known for its focus on small businesses, plans to use the raised capital to enhance lending capabilities, upgrade its technological infrastructure, and widen its branch footprint, according to an official statement.

Seeds Fincap offers secured and unsecured loans of up to Rs 5 lakh, addressing the significant credit deficit of Rs 8 lakh crore currently facing the MSME sector. Matrix Partners India's Managing Director, Vikram Vaidyanathan, emphasized their commitment to investing in high-quality businesses serving this segment, particularly in North and Central India.

Founded in 2021, Seeds Fincap now 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, expanding its loan portfolio to over Rs 330 crore. Co-founder Avishek Sarkar noted that their clientele includes traders, small kirana shops, and micro-manufacturing unit owners, all pivotal to India's economic growth.

(With inputs from agencies.)