Saison Capital, the venture arm of Credit Saison, and Stellaris Venture Partners have contributed Rs 65 crore (roughly $7.5 million) to Bengaluru-based NBFC Techfino.
The money raised will be utilized to grow its secured MSME lending business, improve its technology platform, and broaden its branch network.
Techfino uses a branch-led model to provide Loan Against Property (LAP) to MSMEs in tier II and III cities. It works in Madhya Pradesh, Andhra Pradesh, Gujarat, and Karnataka. By collaborating with educational service providers, it also offers education loans using a B2B2C model.
Techfino, which was founded by Jayaprakash Patra (formerly of ICICI Bank and ING), Rajesh Panda (formerly of Standard Chartered), and Ratikant Satapathy (formerly of Bajaj Finance), uses its own technology platform for collections and underwriting. To enhance risk assessment and validate borrower data, the platform incorporates external APIs.
The company reports that its assets under management (AUM) have surpassed Rs 200 crore and that it has disbursed more than 1 lakh loans. Since its founding, it has turned a profit, and this year it intends to double the number of its branches while increasing secured lending and disbursements.
Over the next three to five years, the company anticipates growing its operations and accumulating a substantial LAP portfolio.
