Noida-based FinAGG Technologies, a cash-flow financier for small and medium businesses (SMBs) in India, has successfully raised $11 million in a Series A funding round. The round was led by Tata Capital Limited and Switzerland-based investment firm Blue Orchard, with participation from the Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partners. Gray Matter Capital, an early-stage global investor, also contributed through non-convertible debentures.
The funding marks SIDBI’s inaugural investment in the fintech sector, emphasizing its commitment to serving MSMEs in India, as stated by Nipun Kohli, Co-founder and CEO of FinAGG. The supply chain financing company, founded in 2019 by Nipun Kohli and Srini Ramki, plans to utilize the capital to expand its omnichannel presence, enhance global outreach, and invest in product innovation.
FinAGG Technologies provides working capital assistance to over 85,000 SMBs, leveraging integrations with public digital infrastructure solutions such as Unified Payments Interface (UPI), Aadhaar, and GSTN. The company focuses on streamlining the underwriting process to ensure quick and easy growth capital for lenders. FinAGG serves a diverse clientele, including some of the country’s largest private-sector banks, non-banking financial institutions, and small finance banks.
Having received approval from the Reserve Bank of India (RBI) for the regulatory sandbox called Quick Cash Flow for MSME lending, FinAGG is now actively developing two more financial products in collaboration with the RBI. The company aims to address the challenges of supply chain financing faced by the over 6.2 million MSMEs in India, contributing significantly to the country’s GDP and employment.
Despite the economic importance of MSMEs, supply chain financing remains a hurdle for many businesses, with an estimated gap exceeding Rs 60,000 crore. FinAGG reported disbursing loans exceeding Rs 5,200 crore to date, with 20% of these loans supporting enterprises led by women entrepreneurs. The company’s efforts have contributed to an annual sales growth of 22%, promoting financial awareness and inclusion in the process.
As FinAGG Technologies continues its mission to support the growth of MSMEs in India, the latest funding round with Tata Capital, Blue Orchard, SIDBI, and other investors positions the company to play a pivotal role in addressing the financing needs of small and medium businesses in the country.
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