Chennai-based non-banking financial company (NBFC) startup GrowXCD Finance has taken a bold leap in its funding journey. The company announced the launch of its Series B round, raising ₹200 crore ($22.7 million). Swiss-based Blue Earth Capital leads the round with strong participation from Prosus and existing investors Lok Capital and UC Impower. This fresh injection of capital not only strengthens GrowXCD’s balance sheet but also signals the global investor community’s confidence in India’s credit-driven fintech ecosystem.
A Quick Recap of the Funding Journey
Earlier this year, GrowXCD closed a pre-Series B round worth ₹50 crore. Lok Capital and UC Impower spearheaded that round, laying the foundation for a larger follow-on. With this new funding, GrowXCD has now raised approximately $34.7 million since inception in 2022.
The board recently approved a resolution to issue 1,56,92,344 Series B compulsory convertible cumulative preference shares (CCCPS) at an issue price of ₹127.61 each. This structure allowed the company to raise ₹200.25 crore, according to filings with the Registrar of Companies (RoC).
Investor Participation Breakdown
The Series B round attracted a diverse group of investors. Blue Earth Capital committed ₹105 crore ($12 million), securing a leading role in the round. Prosus followed with ₹69.4 crore ($7.9 million), marking its confidence in the NBFC’s growth strategy. Lok Capital continued its backing with ₹21.3 crore ($2.4 million), while UC Impower chipped in ₹4.26 crore. Additionally, Anshul Agarwal participated with a smaller but symbolic investment of ₹25 lakh.
This well-rounded participation demonstrates that institutional investors and individual backers see long-term value in GrowXCD’s mission of enabling financial inclusion for underserved segments.
Strategic ESOP Expansion
Alongside this capital raise, GrowXCD also expanded its employee stock option pool. The company allocated an additional 10,00,000 options worth ₹12.76 crore, increasing the ESOP pool’s total value to approximately ₹43 crore. By enlarging the stock option base, the company aims to attract, retain, and incentivize top talent in India’s highly competitive fintech and NBFC ecosystem.
Valuation Leap and Market Standing
According to estimates from Entrackr, GrowXCD’s valuation has surged to around ₹630 crore ($71.5 million). This marks nearly a three-fold jump from the ₹215 crore valuation in its previous funding round. Such rapid appreciation underscores both the investors’ confidence and the market’s recognition of GrowXCD’s growth trajectory.
This leap in valuation also positions GrowXCD among the most promising new-age NBFC startups in India, at par with other rising players targeting the MSME and affordable credit segment.
Founders’ Vision and Business Model
Arjun Muralidharan and Sathish Kumar Vijayan founded GrowXCD in 2022 with a clear mission: bridge the credit gap for micro, small and medium enterprises (MSMEs) and low-income households. They recognized that traditional banks often overlook these customer segments because of high perceived risk and low ticket sizes.
GrowXCD’s business model centers on two products:
- Small property-backed mortgage loans – catering to households and micro-entrepreneurs needing secured credit.
- Short-term unsecured business loans – addressing the urgent working capital needs of MSMEs.
By focusing on underserved groups, GrowXCD directly contributes to financial inclusion, a policy priority in India.
Stakeholding After Series B
With the completion of this round, Blue Earth Capital will hold a 16.7% stake in GrowXCD. Prosus will own 11.04%, while Lok Capital will remain the largest shareholder with 30.84%. This distribution highlights a balanced mix of global institutional capital and impact-focused domestic investors.
The equity split also ensures that the founding team retains strategic control while leveraging the financial and operational expertise of its investor partners.
Strong Revenue Growth with Controlled Losses
Financial filings reveal a sharp surge in GrowXCD’s topline. For the fiscal year ending March 2025, revenue shot up more than seven-fold to ₹27 crore compared to ₹3.73 crore in FY24. The company has clearly gained traction in disbursing loans and scaling its portfolio within a short period.
Losses did widen to ₹8.17 crore in FY25 from lower levels earlier, but the revenue growth far outpaces the increase in expenditure. This suggests that GrowXCD operates in a high-growth phase where investments in technology, customer acquisition, and compliance drive short-term losses but create long-term value.
The Larger NBFC Landscape
India’s NBFC sector plays a crucial role in extending credit beyond traditional banking channels. MSMEs, which form the backbone of India’s economy, often lack access to timely and affordable finance. NBFCs like GrowXCD step in to fill this gap with innovative underwriting models, technology-driven credit assessment, and personalized loan products.
Global investors have increasingly bet on this segment. They view it as a high-potential opportunity given India’s rising demand for credit, digital adoption, and government push for financial inclusion. GrowXCD’s rapid valuation growth reflects this macro environment.
Blue Earth Capital’s Bet on India
Blue Earth Capital, headquartered in Switzerland, focuses on impact investing that aligns financial returns with measurable social outcomes. By investing ₹105 crore in GrowXCD, Blue Earth is betting on India’s underserved credit markets as a force multiplier for economic growth.
The firm’s involvement also signals the increasing appetite of global impact investors to support fintech-NBFC hybrids that combine profitability with inclusion. Blue Earth’s entry brings not only capital but also credibility, governance expertise, and global best practices to GrowXCD’s boardroom.
Prosus and Long-Term Scaling
Prosus, with its ₹69.4 crore commitment, adds muscle to GrowXCD’s Series B. Known for backing transformative technology companies worldwide, Prosus brings experience in scaling digital platforms, financial services, and consumer technology. Its presence provides GrowXCD access to mentorship, global networks, and potential synergies with Prosus’ fintech portfolio.
Future Outlook for GrowXCD
With a war chest of ₹200 crore from this round, GrowXCD now has the resources to accelerate its expansion. The company plans to:
- Expand loan book: Increase disbursals in both secured mortgage loans and unsecured MSME credit.
- Strengthen technology platform: Enhance digital underwriting, AI-driven risk scoring, and automation for faster credit delivery.
- Geographical expansion: Grow beyond Chennai and Tamil Nadu to other high-potential states.
- Improve risk management: Deploy advanced credit monitoring tools to maintain asset quality as scale increases.
- Build talent depth: Leverage the enlarged ESOP pool to attract fintech leaders and NBFC professionals.
If GrowXCD executes this plan effectively, it could emerge as a leading impact-driven NBFC in India within the next five years.
Challenges Ahead
Despite its rapid progress, GrowXCD must address several challenges. Rising competition from other NBFCs and fintechs puts pressure on margins. Regulatory scrutiny on digital lending also remains intense. In addition, maintaining asset quality while expanding into new geographies poses execution risks.
However, with its strong investor backing, experienced founding team, and technology-centric approach, GrowXCD stands well-positioned to overcome these hurdles.
Conclusion
GrowXCD Finance’s ₹200 crore Series B round marks a turning point in its growth journey. The company has successfully attracted marquee investors like Blue Earth Capital and Prosus while retaining support from long-standing backers Lok Capital and UC Impower. Its valuation tripling in less than a year reflects the immense market potential it taps into.
By focusing on MSMEs and low-income households, GrowXCD not only drives profitability but also delivers measurable social impact. In a country where access to affordable credit remains a pressing challenge, the company has the opportunity to blend financial performance with purpose.
With strong governance, disciplined execution, and continuous innovation, GrowXCD could soon become a defining success story in India’s NBFC landscape.
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