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India-based fintech firm FinAGG Technologies has secured $11 million in its Series A funding round to expand in the MSMEs’ fintech space. The investment was co-led by global impact investment manager BlueOrchard and Tata Capital Limited.
The Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partners also participated. In addition to equity-based funding, FinAGG Technologies secured capital from Gray Matter Capital through Non-Convertible Debentures (NCDs) to support financial empowerment initiatives for women entrepreneurs.
According to a company statement, the recently secured funds will play a crucial role in advancing FinAGG Technologies’ offline and online presence, supporting global outreach, and driving innovation within its product offerings.
Nipun Kohli, Co-Founder and Chief Executive Officer of FinAGG Technologies, expressed that the funding round reflects the company’s impact, emphasizing the strategic inclusion of investor partners with high synergy and expertise in their respective domains. The collaboration with BlueOrchard, a leader in climate-based impact programs, positions FinAGG to promote climate insurance penetration to clients, including Tata Capital—an influential non-banking financial company (NBFC) in India.
Furthermore, the involvement of SIDBI, a development bank owned by the Government of India, is instrumental in fostering the growth of FinAGG’s GST Sahay initiative by providing access to cost-effective funds.
The Product and Engineering department is actively working on integrating blockchain technology into an industry that traditionally relied on conventional pen-and-paper underwriting. These new features are expected to offer a transformative perspective on borrowers and make the underwriting process more meaningful.
Established in 2019, FinAGG offers working capital solutions to Micro, Small, and Medium Enterprises (MSMEs). The company has strategically leveraged OCEN and GST Sahay for supply chain financing, making it a notable participant in both the Reserve Bank of India (RBI) and International Financial Services Centres Authority (IFSCA) sandboxes. With seamless integration with India Stack’s Aadhar, GSTN, UPI, NACH, and other components, FinAGG ensures lenders swift access to efficient growth capital.
In its mission to empower MSMEs, FinAGG has successfully onboarded major consumer brands since 2020, establishing collaborations with over 25 recognized entities. These include leading banks, non-banking financial companies (NBFCs), and organizations that foster MSME development in India.
The company’s comprehensive approach, encompassing financial and technological enablement, has gained success, with 70% of its total revenues derived from providing services to banks and the remainder from facilitating technological advancements for these financial institutions.
The firm, founded by Banking, Supply Chain, and IT experts, envisions expanding its business across MSMEs in 150 cities over the next six months, building on its already successful presence in 45 cities.
India has a dynamic landscape of micro, small, and medium enterprises (MSMEs), where the sector’s approximately 63 million entities play a role in contributing to the country’s GDP and employment.
The firm addresses the supply chain finance gap in India, estimated at INR 60,000 Crores ($7.2 billion), having dispersed over INR 5230+ Crores ($630+ million) to more than 85,000 MSMEs to date. Notably, 20% of these enterprises are led by women entrepreneurs, with annual sales growth of 22%, and promoting financial awareness and inclusion.
Srini Ramki, Co-founder and Chief Technology Officer of FinAGG Technologies emphasized the firm’s impact, reaching over 85,000 borrowers in 100 Tier 1 and Tier 2 cities.
Rajiv Sabharwal, the Managing Director and Chief Executive Officer of Tata Capital, expressed excitement about the collaboration and supporting FinAGG’s next growth phase.
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