FinAGG Technologies, a fintech startup offering working capital solutions to micro, small, and medium enterprises (MSMEs), announced it secured $11 million in a Series A funding round. The funding was led by BlueOrchard, backed by Schroders and Tata Capital.
The Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partner also joined in this equity-based round.
Furthermore, the company, serving as a loan agent partner for the Open Credit Enablement Network (OCEN), secured an additional million dollars by acquiring shares from early employees, according to Nipun Kohli, the founder and CEO.
With a current workforce of 150 employees, the company had previously secured external capital through two seed funding rounds in 2020 and 2022, with support from investors including BLinC Invest and Prime Venture Partners.
“Rapidly becoming a premier partner to blue-chip companies in FMCG, consumer electronics, and building materials, FinAGG gains access to millions of Indian MSMEs… Together, we aspire to make substantial contributions to the economic empowerment and sustainability of MSMEs across the nation,” Mahesh Joshi, head of private equity investments at BlueOrchard Asia, said.
FinAGG facilitates credit access and underwrites loans without utilizing its balance sheet. The company collaborates with lenders like Tata Capital, SIDBI, Aditya Birla Finance, and HDFC Bank to extend credit to enterprises identified through fast-moving consumer goods distributors such as ITC.
Founded in 2019, FinAGG leverages both OCEN and GST Sahay for its supply-chain financing operations. Additionally, some of its products are developed within the sandboxes of the Reserve Bank of India and the International Financial Services Centres Authority.
Kohli stated that the business currently operates in MSMEs across 45 cities, with plans to expand to 150 cities in the next six months. Presently, 70% of its total revenues come from services provided to banks, while the remaining 30% is generated from technology enablement for these banks.
“Our existing partnership with FinAgg in the SME supply chain has been successful, showcasing promising traction. We value FinAgg’s tech-driven efficiency and focus on distributor finance access,” Rajiv Sabharwal, managing director and CEO, Tata Capital, said.
