In a powerful step toward bridging India’s rural credit gap, Saarathi Finance, a Non-Banking Financial Company (NBFC), has successfully closed its inaugural funding round of ₹475 crore. The Series A round was co-led by TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and several angel investors who contributed around ₹350 crore collectively. Founders Vivek Bansal and Sunil Daga infused the remaining capital, pushing the company’s valuation to over ₹900 crore.
But this isn’t just another funding announcement — it’s a story of financial inclusion and empowerment for the country’s overlooked heroes: small business owners in semi-urban and rural India.
At its core, Saarathi Finance is more than a lender — it’s a companion (“saarathi”) for micro, small, and medium enterprises (MSMEs) that have long been underserved by traditional banks. From Tamil Nadu to Uttar Pradesh, the company is building financial bridges where formal credit access is scarce.
Through a combination of tech-enabled loan processing and personalized engagement, Saarathi offers both secured and unsecured loans. Its approach emphasizes flexible income assessments and quick disbursals, addressing the unique, nuanced realities of small entrepreneurs — whether it’s a Kirana store in a Tier-3 town or a manufacturing unit in a village cluster.
Saarathi’s philosophy isn’t just about providing loans. It’s about recognizing and supporting the dreams of entrepreneurs in Bharat — dreams often limited not by potential, but by access. This funding will help the company scale operations, deepen its presence in target states, and enhance its digital and on-ground lending ecosystem.
“We are committed to empowering Bharat’s entrepreneurs by providing more than just credit — a partnership that values and supports their growth,” said Vivek Bansal, Founder & CEO of Saarathi Finance. “This funding milestone enables us to accelerate our mission, ensuring every stakeholder, from entrepreneurs to investors, is valued and cared for in our journey.”
Saarathi’s journey is emblematic of a broader shift in Indian fintech — one where technology meets empathy and data-driven innovation is paired with a real understanding of people’s lives. It’s not just about financial returns, but about impact, trust, and inclusion.
As India’s MSME sector — the backbone of its economy — continues to recover and grow, Saarathi Finance stands poised to become a crucial enabler, proving that when capital meets compassion, real change is possible.
