Gurugram-based lender Seeds Fincap has raised ₹50 crore in a Pre-Series B funding round led by existing backer Z47, with participation from Lok Capital and new investors Norinchukin Capital and Alteria Capital.
The company, started in 2021 by Subhash Chandra Acharya and Avishek Sarkar, focuses on giving small businesses access to loans an area where India faces a massive credit gap of nearly ₹30 trillion.
Today, Seeds runs 120 branches across eight states Madhya Pradesh, Uttar Pradesh, Gujarat, Uttarakhand, Punjab, Bihar, Rajasthan, and Haryana. It has already lent over ₹1,000 crore to more than 50,000 micro, small, and medium enterprises (MSMEs), using a tech-driven approach to assess borrowers based on their business cash flow rather than just traditional collateral. Loan sizes range from ₹50,000 to ₹10 lakh.
The company has built a fully digital process from sourcing customers to collections, manages ₹500 crore in assets, keeps its bad loans low at around 2%, and ended the last financial year with a profit.
The new funding will help Seeds expand into more underserved regions, launch new financial products for MSMEs, and strengthen its technology and risk management systems.
“For us, lending to MSMEs is about enabling entrepreneurship,” said Subhash Chandra Acharya. “With better analytics and digital processes, we can get capital to small businesses when they need it most.”
Co-founder Avishek Sarkar added that lending in this segment requires “a deep understanding of small business realities”, along with the flexibility to adapt quickly to local needs.
Z47’s Vice President Anish Patil said the firm doubled its investment because Seeds has consistently delivered strong results despite a tough lending environment. Other investors praised the company’s ability to blend technology with grassroots-level customer understanding.
With this round, Seeds aims to keep building its presence in India’s smaller towns and cities bringing more entrepreneurs into the fold of formal finance.
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