Namdev Finvest, a non-banking finance company (NBFC), secured $15 million (approximately Rs 125 crore) in an equity funding round. The funding came from British International Investment, Incofin India Progress Fund (an existing investor), LC Nueva, some employees, and the promoters.
British International Investment and Incofin invested Rs 25 crore each, and LC Nueva invested around Rs 10.6 crore, as stated by the company.
This round has taken the overall funding in Namdev to around $22 million.
Namdev Finvest, headquartered in Jaipur, primarily operates in Rajasthan, constituting 80% of its business. However, the company is currently in the expansion phase, targeting operations in Gujarat, Madhya Pradesh, Delhi, and Uttar Pradesh.
“We intend to use the money that we have raised mainly to fuel our lending operations, support geographical expansion and invest in technology,” said chief executive officer Jitendra Tanwar.
Namdev Finvest specializes in providing small business loans and is diversifying into green financing with the recent injection of funds. The company plans to finance electric three-wheelers, extend credit to firms involved in developing infrastructure within the electric mobility ecosystem, and offer solar loans for both commercial and residential purposes.
“We are focused on tier-three and -four locations and serve customers who are not catered to by traditional banking channels. Hence, we also have a strong branch-led business model,” Tanwar said.
Tanwar mentioned that 85% of its Rs 1,000 crore assets under management are allocated to the MSME business, with the remaining portion dedicated to the green financing sector.
Looking ahead to FY25, Namdev Finvest aims to boost its assets under management to Rs 2,500 crore. The company’s strategy involves establishing branches in the newly targeted states, increasing its branch count from the current 110 to 150 by FY25.
“Through this commitment, we are able to not only help improve access to credit for more underserved MSMEs in Tier II and Tier III cities, but also promote sustainable economic growth through Namdev’s new green loan product for EV and solar products,” said Srini Nagarajan, managing director and head of Asia at British International Investment.
