Techfino Raises INR 65 Cr to Expand Loan Offerings for MSMEs
Techfino, a Bengaluru-based Non-Banking Financial Company (NBFC), has successfully raised INR 65 Cr (around $7.5 Mn) in an undisclosed funding round. The round was backed by Stellaris Venture Partners and Saison Capital.
Deployment of Funds
Techfino plans to utilize the funds for:
- Expanding its branch network
- Strengthening its technology stack
- Scaling operations
Ratikant Satapathy, co-founder of Techfino, emphasized the company’s tech-first approach, stating that their internally developed technology platform has been pivotal in improving:
- Underwriting efficiency
- Data-driven risk assessments
- Reducing turnaround time (TAT)
Business Model and Focus
Founded in 2019 by Ratikant Satapathy, Rajesh Panda, and Jayaprakash Patra, Techfino focuses on providing loans against property for medium, small, and micro enterprises (MSMEs), with a particular emphasis on Tier II and Tier III cities in India. The company also partners with educational institutions to offer education loans.
Techfino currently operates in Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh, through its branch-based model. To date, the company has:
- Disbursed more than 1 lakh loans
- Crossed INR 200 Cr in Assets Under Management (AUM)
Rising Investor Interest in NBFCs
This funding comes amid increasing investor interest in Indian NBFCs, especially those catering to the MSME sector:
- Flexiloans raised INR 375 Cr last week in its Series C round
- Bizloan raised INR 35 Cr earlier this year in its Series A
- Jio Financial Services infused INR 1,000.24 Cr into its NBFC arm, Jio Finance Limited (JFL)
Additionally, major fintech giants like MobiKwik and Flipkart are venturing into the NBFC space, expanding their lending capabilities.
Techfino’s Growth Prospects
As Techfino continues to expand its operations and digital capabilities, it is well-positioned to tap into the growing demand for alternative lending solutions in India. With MSMEs being a critical part of the Indian economy, Techfino’s innovative approach to property-backed loans and its emphasis on technology integration is expected to drive its growth trajectory in the coming years.
