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Fintech startup FinAGG Technologies on Thursday announced that it raised $11 million as part of its Series A funding round co-led by BlueOrchard and Tata Capital, with participation from the Small Industries Development Bank of India (SIDBI) and Prime Venture Partners.
The company, which operates in the Micro, Small and Medium Enterprises (MSME) financing space, said the latest funding will be utilised towards expanding its offline and online presence, global outreach, and investments in product innovation.
The fintech firm had raised $3 million in a funding round led by venture capital company BLinC Invest in 2022.
“Having the likes of BlueOrchard, who are the leaders when it comes to climate-based impact programs, will help us drive the penetration of climate insurance to our client. Tata Capital, which is one of the biggest non-banking financial companies (NBFCs) in India, will help us scale our business operations to new heights, and SIDBI, which is a development bank owned by the Government of India (GOI), will help us grow GST Sahay through access to cheap funds,” said Nipun Kohli, Co-founder & Chief Executive Officer (CEO) of FinAGG Technologies.
The Noida-based company said its Product and Engineering department is working on bringing blockchain activities related to underwriting.
“These new features will help us look at borrowers under a completely different light and make underwriting in this space more meaningful,” Kohli added.
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“Initiating a strategic investment drive, we selectively invest in businesses aligned with our goals. Our existing partnership with FinAGG in the SME supply chain has been successful, showcasing promising traction. We value FinAGG's tech-driven efficiency and focus on distributor finance access,” said Rajiv Sabharwal, Managing Director & CEO, Tata Capital.
The company stated that it has served over 85,000 borrowers across 100 tier-one and tier-two cities in the country since its inception.
Meanwhile, the company added that its Quick Cash Flow platform completed the Reserve Bank of India’s (RBI) Sandbox for MSME Lending in November 2023, which utilises technology to disburse low-cost loans.
