Techfino Secures ₹65 Crore to Expand MSME Lending Network
In a major boost to India’s alternative lending ecosystem, Techfino has raised ₹65 crore in funding from Stellaris Venture Partners and Saison Capital.
The fresh capital will be used to expand its branch footprint, enhance its technology infrastructure, and scale MSME lending operations in semi-urban and rural India.
This development comes at a time when access to formal credit remains limited for many small enterprises across the country.
Deep Focus on MSME Lending in Tier II and III Cities
Techfino, a tech-enabled NBFC founded in 2019, offers Loan Against Property (LAP) to MSMEs in smaller Indian towns.
Currently operational in Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh, the company relies on a branch-led disbursement model for deeper market access.
Loan ticket sizes typically range between ₹8–12 lakh, targeting MSME borrowers often neglected by large banks and conventional NBFCs.
To date, Techfino has disbursed over 1 lakh loans and crossed ₹200 crore in assets under management (AUM).
Tech-Driven Risk and Underwriting Efficiency
Co-founder Ratikant Satapathy shared that the firm has built its own underwriting platform from the ground up.
This proprietary tech stack integrates multiple external APIs to automate verification and improve credit risk assessment.
As a result, the company has improved turnaround time (TAT) and reduced operational friction in loan processing and approvals.
The tech-first approach allows for data-backed lending, which significantly reduces defaults and enables fast decision-making across locations.
Addressing the Formal Credit Gap for MSMEs
Co-founder Rajesh Panda highlighted a massive credit gap among India’s MSMEs, especially in rural and semi-urban geographies.
He noted, “Out of 640 million registered MSMEs, nearly 390 million lack access to formal lending channels today.”
According to Panda, this underserved segment generates an estimated ₹2 lakh crore in quarterly credit demand, which goes unmet.
MSME lending in such areas offers both impact and scale potential, given limited competition and high borrowing needs.
Strategic Plans for Growth and Expansion
With the new funds, Techfino plans to double its branch count by the end of the year.
The goal is to scale loan disbursements and AUM rapidly, while also building a long-term secured lending vertical over the next 3–5 years.
The company will continue using its B2B2C model for education loans, through partnerships with education service providers.
This hybrid strategy helps Techfino diversify its loan book while keeping risk profiles manageable and growth consistent.
Investors Back Techfino’s Credit Inclusion Mission
Stellaris Venture Partners and Saison Capital have both backed Techfino’s vision to drive MSME lending at the grassroots level.
Notably, Saison Capital is part of Tokyo-listed Credit Saison, bringing global fintech insights and long-term partnership potential.
With fresh capital, Techfino will also continue enhancing its collection infrastructure and backend support systems, essential for NBFC scalability.
These upgrades are crucial for navigating regulatory compliance and maintaining low NPA ratios as the business scales.
Conclusion: MSME Lending Gets a Big Push
Techfino’s ₹65 crore raise reflects growing investor confidence in tech-enabled MSME lending models tailored for Bharat’s next-tier borrowers.
By blending on-ground presence with digital intelligence, Techfino is poised to address India’s MSME credit gap more effectively.
With the right backing and focused execution, it aims to redefine credit access for millions who power India’s small-business economy.