In its Series A round headed by Peak XV Partners, Prayaan Capital, led by Rangarajan Krishnan (Ranga), a former JMD and CEO of publicly traded Five-Star Business Finance, has raised Rs 110 crore.
According to a press release from Prayaan Capital, the money will be used to develop a lending platform, grow its staff, and increase its presence in important MSME markets in India.
Recently, Rangarajan Krishnan purchased a majority share in Prayaan Capital.
The business will concentrate on helping underprivileged MSMEs in India, a sector that still has a $300 billion credit gap.
Prayaan Capital claims that it aims to create an organization that combines a technology-enabled operating model with the demonstrated advantages of branch-led distribution. In order to enhance credit availability and better assist small businesses, the company intends to use digital tools in conjunction with in-depth customer knowledge.
The goal of Prayaan Capital, a technology-enabled MSME lending platform, is to increase small businesses’ access to credit in India. The company serves underprivileged business owners throughout India by fusing cutting-edge technology with extensive underwriting experience.
Peak XV has invested in more than 450 businesses and managed more than $10 billion in capital across 16 funds during the last 20 years of operations in the area. To date, the portfolio has experienced more than 35 initial public offerings (IPOs) and multiple profitable mergers and acquisitions.
