Indian fintech startup FinAGG Technologies announced the successful closure of an $11 million Series A funding round, co-led by BlueOrchard and Tata Capital. The funding also saw participation from the Small Industries Development Bank of India (SIDBI) and Prime Venture Partners. FinAGG Technologies operates in the Micro, Small, and Medium Enterprises (MSME) financing space and plans to utilize the funds for expanding its offline and online presence, global outreach, and investments in product innovation.
Key Funding Participants
BlueOrchard: A prominent player known for climate-based impact programs, BlueOrchard’s involvement is expected to drive the penetration of climate insurance within FinAGG’s client base.
Tata Capital: As one of the largest non-banking financial companies (NBFCs) in India, Tata Capital’s partnership aims to support FinAGG Technologies in scaling its business operations to new heights.
SIDBI: A development bank owned by the Government of India, SIDBI’s participation is viewed as crucial for enabling FinAGG’s growth in GST Sahay through access to cost-effective funds.
Usage of Funds
The latest funding injection follows a $3 million funding round in 2022, led by BLinC Invest. FinAGG Technologies plans to leverage the Series A funds for:
- Expanding its offline and online presence.
- Global outreach initiatives.
- Investments in product innovation, including the exploration of blockchain activities related to underwriting.
Technology Focus: Blockchain in Underwriting
FinAGG Technologies is actively exploring the integration of blockchain technology into its underwriting processes. The move is expected to bring greater transparency and efficiency to the underwriting practices, allowing a more meaningful assessment of borrowers in the MSME financing space.
Achievements and Recognition
- The company boasts a significant track record, having served over 85,000 borrowers across 100 tier-one and tier-two cities in India since its inception.
- FinAGG Technologies’ Quick Cash Flow platform successfully completed the Reserve Bank of India’s (RBI) Sandbox for MSME Lending in November 2023. This platform utilizes technology to disburse low-cost loans, showcasing the company’s commitment to innovation and efficiency in the lending space.
Industry Insights
Rajiv Sabharwal, Managing Director & CEO of Tata Capital, emphasized the strategic alignment between Tata Capital and FinAGG, particularly in distributor finance access within the SME supply chain. The funding round reflects investor confidence in FinAGG Technologies’ tech-driven efficiency and its vision for advancing MSME financing solutions in India.