Techfino Raises ₹65 Crore to Power MSME Lending in Bharat’s Heartland

In a move that underscores the growing investor confidence in Bharat-focused fintech, Bengaluru-based NBFC Techfino has secured ₹65 crore (~$7.5 million) in fresh funding. The round was led by Stellaris Venture Partners and Saison Capital, the venture arm of Japan-based Credit Saison.

Techfino plans to use the capital to expand its branch network, strengthen its proprietary tech stack, and scale its secured MSME lending portfolio, particularly Loan Against Property (LAP) in Tier II and Tier III cities.

Building for the Underserved

While most fintechs chase urban customers with sleek apps, Techfino is betting on India’s overlooked economic engine—its small towns and small businesses.

Founded by seasoned finance professionals—Jayaprakash Patra (ex-ICICI Bank, ING), Rajesh Panda (ex-Standard Chartered), and Ratikant Satapathy (ex-Bajaj Finance)—Techfino is aiming to become the go-to lender for micro, small, and medium enterprises (MSMEs) that are often underserved by traditional banks.

“We believe the next wave of financial inclusion lies beyond metros,” the founders shared. “MSMEs in smaller towns face a real credit crunch. We’re here to change that—responsibly and profitably.”

A Profitable, Purpose-Driven Play

Techfino operates a branch-led model, offering Loan Against Property (LAP) to MSMEs in Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh. Unlike most early-stage NBFCs, Techfino has been profitable since inception—a rarity in today’s growth-at-all-costs environment.

Their tech-enabled approach includes a homegrown underwriting and collections platform that integrates with external APIs for borrower data verification, fraud detection, and real-time risk scoring.

In addition to MSME lending, Techfino also provides education loans through a B2B2C model, partnering with educational service providers to offer customized student financing.

Scale and Strategy

With more than 1 lakh loans disbursed and over ₹200 crore in assets under management (AUM), Techfino is now preparing for a major expansion phase.

Plans include:

Doubling branch count across operating states in FY26
Increasing secured disbursements, with a focus on LAP
Continuing to invest in automation and risk infrastructure

Over the next 3–5 years, the company aims to build a sizable LAP portfolio, further formalize its customer base, and improve credit access for India’s underserved small business sector.

Backing from Global and Local Investors

For Stellaris Venture Partners and Saison Capital, the investment in Techfino is more than a financial bet—it’s a signal of belief in India’s next-gen NBFCs that marry on-ground operations with smart technology.

“Techfino’s hybrid approach—leveraging physical presence with tech-powered risk assessment—has massive potential in a country like India, where formal credit is still out of reach for millions,” said a representative from Stellaris.

Not Just Fintech—It’s Fin-impact

At a time when fintech headlines are dominated by flashy valuations and urban-centric models, Techfino stands out for its grounded, impact-first, and profit-driven strategy.

This latest funding round is not just about growing a business—it’s about scaling access, deepening trust, and empowering India’s grassroots entrepreneurs with the credit they deserve.