Mumbai-based fintech startup Saswat Finance has secured $2.6 million in its pre-Series A funding round. Ankur Capital led the funding, while existing investor Incubate Fund Asia also participated. Saswat Finance continues to attract strong investor confidence as it transforms rural financial services with technology-driven solutions.
The startup had previously raised seed funding from Seedstars VC, Sparrow VC, and Incubate Fund Asia. With this new round of funding, Saswat Finance will strengthen its technological platform, launch innovative financial products, and expand into more Indian states.
The Founders’ Mission
In 2022, Arun Tiwari, Indrajyoti Bhattacharjee, and Ravi Ranjan Chaudhary founded Saswat Finance to address a persistent gap in India’s financial ecosystem. Millions of people in rural and semi-urban regions struggle to access formal banking services. Traditional financial institutions often hesitate to serve these communities due to limited credit history, poor documentation, and high operational costs.
The founders recognized this underserved population and designed Saswat Finance to bridge the gap. They built a business model that combines advanced technology with hyper-local data to deliver customized financial services directly to rural households. By using local information such as milk production records, livestock ownership, and geographical conditions, Saswat Finance accurately assesses creditworthiness and delivers tailored loan products.
Delivering Critical Financial Services
Saswat Finance offers a wide range of financial products specifically designed for rural populations. These include:
- Small-ticket loans for procuring cattle and livestock
- Insurance products tailored for farmers and rural workers
- Financial advisory services
- Livestock-backed secured loans
The company understands the unique financial needs of its customers. Farmers often require short-term credit to buy livestock or agricultural inputs. With limited access to formal banking, they often turn to unregulated lenders who charge exorbitant interest rates. Saswat Finance eliminates this dependency by providing affordable loans with transparent terms.
The company also offers insurance products that protect rural families against unexpected losses. Many farmers remain vulnerable to natural disasters, disease outbreaks among livestock, or market price fluctuations. Saswat Finance helps these households secure their financial future by offering targeted insurance solutions.
Technology at the Core
Unlike traditional lenders, Saswat Finance places technology at the center of its operations. The startup collects granular, hyper-local data to build detailed credit profiles for rural customers. Field agents visit villages, collect data points, and feed the information into Saswat’s centralized system.
The platform analyzes factors such as:
- Milk production volumes
- Livestock health and numbers
- Soil and crop patterns
- Market proximity
- Climate and geographical conditions
By integrating this localized data, Saswat Finance can assess loan eligibility more accurately than traditional models that rely solely on paperwork and credit scores. The company’s use of artificial intelligence and data analytics allows it to offer quick loan approvals, customized repayment schedules, and minimal paperwork for borrowers.
The New Funding Plans
Saswat Finance will strategically utilize the newly secured $2.6 million to drive its next phase of growth. The leadership team has outlined clear priorities for deploying the funds:
- Enhancing Technology Systems
The company will strengthen its digital infrastructure to process more data efficiently and deliver faster decisions to its customers. Improved technology will also help field agents operate more effectively, using mobile tools to capture real-time data. - Launching New Financial Products
Saswat plans to introduce new loan products that serve a broader range of rural activities. These may include credit solutions for small businesses, agri-input financing, and seasonal loans for crop cycles. - Geographical Expansion
Saswat Finance will expand its operations to additional states such as Maharashtra, Karnataka, and Uttar Pradesh. These states house large rural populations that currently lack adequate financial services. Saswat aims to reach deeper into the country’s heartland and serve more underserved communities. - Advancing Data and Analytics Platforms
The company will invest heavily in its analytics engine, enabling more precise credit assessments and better risk management. Enhanced analytics will also support the company’s growth by reducing defaults and ensuring sustainable lending practices.
Impressive Progress So Far
In a short span since its founding, Saswat Finance has already achieved significant traction. The company has successfully onboarded over 6,000 customers. It has disbursed loans worth more than ₹55 crore (approximately $7 million). Most of these loans come secured against livestock and other rural assets, ensuring lower default rates and more predictable cash flows.
By securing these assets, Saswat minimizes lending risk while enabling rural borrowers to unlock much-needed capital. This approach allows borrowers to build financial stability without falling into cycles of unsustainable debt.
The CEO’s Perspective
Arun Tiwari, co-founder and CEO of Saswat Finance, believes that India’s rural financial inclusion requires an innovative approach. He shared his vision while announcing the funding round.
“India’s rural segments — over 65% of the population — remain underserved by traditional financial services. At Saswat, we blend technology and trust to bring financial services directly to their doorstep. This funding will help us deepen our reach and scale operations,” said Tiwari.
He emphasized that Saswat Finance doesn’t simply issue loans but builds long-term relationships with customers. The company educates borrowers on financial literacy, insurance options, and sustainable borrowing practices, ensuring they benefit from lasting financial well-being.
The Growing Need for Rural Financial Inclusion
India’s rural economy continues to serve as the backbone of the nation. Despite contributing significantly to GDP and employment, rural communities still struggle to access formal banking and credit services. Many banks hesitate to lend in these areas due to lack of proper documentation and traditional collateral.
By designing a model that works around these challenges, Saswat Finance fills a critical void. The company empowers farmers, cattle rearers, and small businesses to access capital that fuels economic growth, asset creation, and family security.
Financial inclusion in rural India also helps reduce income inequality and strengthens the country’s overall economy. Access to affordable credit allows families to invest in better agricultural practices, send children to school, and withstand unforeseen shocks without falling into poverty traps.
Building Strategic Partnerships
Saswat Finance recognizes that partnerships will play a crucial role in scaling its operations. The company actively collaborates with:
- Agri-tech startups to offer bundled financial products
- Dairy cooperatives to reach livestock owners
- Rural self-help groups and NGOs to drive financial literacy
- Government bodies that support financial inclusion programs
These partnerships allow Saswat to tap into existing rural networks and broaden its customer base quickly. The company envisions creating a strong ecosystem that combines technology, data, and on-the-ground partnerships to build trust within local communities.
Future Outlook
With this successful pre-Series A round, Saswat Finance stands well-positioned for rapid growth. The company will continue to refine its credit assessment models, build stronger customer relationships, and introduce more specialized financial products tailored for India’s diverse rural landscape.
The leadership team remains committed to its mission: bringing affordable, transparent, and accessible financial services to India’s most underserved communities. As Saswat Finance expands its reach into Maharashtra, Karnataka, and Uttar Pradesh, it will transform the lives of thousands more rural families who can now access capital that was previously out of reach.
By staying focused on rural needs and leveraging data-driven technology, Saswat Finance proves that innovation holds the key to solving India’s most pressing financial inclusion challenges.
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