Chennai | February 26, 2026: Prayaan Capital, led by Rangarajan Krishnan (Ranga), former JMD and CEO of publicly listed Five-Star Business Finance, today announced it has raised INR 110 Crore in its Series A round led by Peak XV Partners.
Ranga, who recently acquired a controlling stake in Prayaan Capital, is building a new-age MSME lending platform designed to expand access to credit for India’s small businesses. By combining deep on-ground underwriting expertise with a technology-first approach across sourcing, underwriting, and collections, Prayaan Capital will focus on serving underserved MSMEs across India — a segment facing an estimated USD 300 billion credit gap.
Market Context
- India has approximately 70 million MSMEs, employing nearly 300 million people.
- MSMEs are critical drivers of economic growth, yet access to formal credit remains limited.
- This creates a large and enduring opportunity for new-age lenders built with operational discipline and modern technology.
Ranga brings two decades of financial services experience. As JMD and CEO of Five-Star Business Finance, he scaled the company into one of India’s leading MSME lenders, culminating in a successful public listing in 2022.
Peak XV Partners has known and partnered with Ranga for over 15 years, including during his leadership journey at Five-Star, and is now partnering with him from day one as he builds Prayaan Capital.
Company Vision
Prayaan Capital seeks to build an institution that combines the proven strengths of branch-led distribution with a technology-enabled operating model. The company aims to leverage digital tools alongside deep customer understanding to improve credit access and serve small businesses more effectively.
Rangarajan Krishnan, Promoter, Prayaan Capital, said: “Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit. Prayaan Capital is built on the belief that combining deep customer understanding with technology can meaningfully expand access. I am grateful to partner with Peak XV, who have been long-term believers in this segment and have supported me through multiple chapters of my journey.”
GV Ravishankar, Managing Director, Peak XV Partners, added: “We have known Ranga for over 15 years, and our partnership has been shaped by a shared commitment to expanding access to credit for small businesses. He and his team bring deep experience and a genuine obsession with serving this segment well. Having seen firsthand the impact they created at Five-Star, we are excited to partner with them from day one as they build Prayaan Capital.”
Use of Funds
The investment will be used to:
- Build Prayaan Capital’s lending platform.
- Expand its team and talent base.
- Grow its presence across key MSME markets in India.
About Prayaan Capital
Prayaan Capital is a technology-enabled MSME lending platform focused on expanding access to credit for India’s small businesses. Led by Rangarajan Krishnan, former CEO of Five-Star Business Finance, the company combines deep underwriting expertise with modern technology to serve underserved entrepreneurs across India.
About Peak XV Partners
Peak XV Partners (formerly Sequoia Capital India & SEA) is a leading venture capital firm investing across India, APAC, and beyond.
- Over 20 years of operations in the region.
- Manages USD 10 billion+ in capital across 16 funds.
- Invested in 450+ companies.
- Portfolio includes 35+ IPOs and several successful M&As.
🌐 Website: www.peakxv.com
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