A $11 million Series A funding round led by global impact investment manager BlueOrchard and Tata Capital Limited has been raised by FinAGG Technologies, a fintech startup providing cash-flow based supply chain finance. The Small Industries Development Bank of India (SIDBI) and longtime supporter Prime Venture Partners participated in the round.
Furthermore, FinAGG used non-convertible debentures (NCDs) to obtain funding from Gray Matter Capital.
According to a press statement from the company, FinAGG’s plans to use the funds to grow both its online and offline presence, improve its reach internationally, and spur product innovation. Prior to that, in September 2022, it raised $3 million in a pre-Series A round led by BLinC Invest.
“Our product and engineering department is currently working on bringing blockchain to an industry which worked on conventional pen and paper underwriting until recently. These new features will help us look at borrowers under a completely different light and make underwriting in this space more meaningful,” said Nipun Kohli, co-founder and CEO of FinAGG.
FinAGG, a supply chain platform founded in 2020 by Kohli and R. Srinivasan, focuses on offering closed-loop credit solutions to distributors, retailers, and MSMEs through its in-house platform Quick Cash Flow.
According to the company, over 85,000 MSMEs have received loans totaling more than Rs 5,230 crore thus far. Notably, women entrepreneurs run about 20% of these businesses.
The company claims that in order to provide low-cost loans, its loan disbursement platform Quick Cash Flow completed the RBI Sandbox for MSME lending in November 2023. Additionally, the platform is integrated with Aadhaar, GSTN, UPI, and NACH from the India Stack, guaranteeing lenders quick growth capital access.
It has welcomed a number of well-known consumer brands, top banks, NBFCs, and organizations that promote MSME growth in India since 2020. Among FinAGG’s prominent partners are Marico, Pepsico, UGro, BluStar, Daikin, IDFC First Bank, HUL, and ITC.
From Rs 3.69 crore in FY22 to Rs 11.96 crore in the fiscal year that ended in March 2023, FinAGG’s operating revenues increased. The company’s profit dropped from Rs 23.81 lakh in the previous fiscal year to Rs 8.56 lakh in FY23.
