National, Wednesday, 17th July 2024: Seeds Fincap Pvt. Ltd., a Non-Banking Financial Company (NBFC), has successfully raised over $8.5 million in a Series A funding round led by Lok Capital and Matrix Partners India (aka Z47). This infusion of funds will bolster Seeds Fincap’s lending capabilities, enhance its technological infrastructure, and expand its branch footprint.
The micro, small, and medium enterprises (MSME) sector in India faces a significant credit deficit exceeding ₹8 trillion, with businesses spanning manufacturing, trading, and allied services often underserved by traditional financial institutions. Seeds Fincap aims to address these challenges by offering tailored credit products, including secured and unsecured loans ranging from ₹1-5 lakhs. The company employs a rigorous credit assessment process that evaluates cash flows to offer appropriately priced loans, leveraging technology to monitor risks and optimize operational efficiencies.
Since its inception in 2021 by Subhash Acharya and Avishek Sarkar, seasoned professionals in the lending sector, Seeds Fincap has rapidly expanded to establish 90 branches across 8 states, focusing prominently on UP, Bihar, Rajasthan, and Haryana. Over the past three years, Seeds Fincap has disbursed over ₹600 crore to more than 50,000 customers, with its loan book surpassing ₹330 crore. The NBFC has also cultivated a robust liability base through partnerships with 35 lending institutions, including AU Small Finance Bank, Tata Capital, IDFC Bank, Yes Bank, and Vivriti Capital.
Subhash Acharya, Managing Director and Co-founder of Seeds Fincap Pvt. Ltd., emphasized, “MSMEs in India face persistent credit gaps, underserved by existing financial providers. At Seeds Fincap, we’ve pioneered a unique credit evaluation framework and tech-enabled processes that empower enterprises with bespoke financial solutions. Our partnership with Matrix Partners India and Lok Capital underscores our commitment to unlocking the potential within this segment, enabling the aspirations of India’s resilient entrepreneurs.”
Avishek Sarkar, Co-founder of Seeds Fincap Pvt. Ltd., added, “Our clientele, comprising traders, small kirana shops, micro-manufacturers, and allied service providers, crucially contribute to India’s economic fabric. Many struggle with working capital needs and access to affordable credit. Seeds Fincap addresses these challenges by offering a range of credit products tailored to their specific requirements, supported by deep expertise in cash flow assessment and business underwriting.”
Vikram Vaidyanathan, Managing Director of Matrix Partners India (aka Z47), remarked, “Investing in high-quality businesses like Seeds Fincap, which cater to the MSME segment with ‘right-tech’ credit solutions, is pivotal to India’s journey towards a $10 trillion economy. We are impressed by Subhash and Avishek’s industry knowledge, operational acumen, and commitment to credit excellence. We look forward to collaborating closely with them to build a world-class lending institution.”
Rajat Bansal, Director at Lok Capital, affirmed their support for Seeds Fincap’s mission, highlighting the company’s robust credit focus and operational excellence as key drivers of future growth. He expressed confidence in the partnership with Matrix Partners India (aka Z47) and their shared vision for Seeds Fincap’s expansion and impact.
Looking ahead, Seeds Fincap plans to scale its lending activities, diversify into new product offerings, and expand its branch network to further empower MSMEs across India.
