FinAGG Technologies, a fintech startup that provides working capital solutions to micro, small and medium enterprises (MSMEs), has raised $11 million in a Series A funding round co-led by global impact investment manager BlueOrchard and Tata Capital Limited. Small Industries Development Bank of India (SIDBI), and existing investor Prime Venture Partners also participated.
About FinAGG Technologies
Founded in 2019, FinAGG Technologies operates in the MSME financing space, offering supply chain finance and cash flow loans to small businesses. It claims to have integrated its platform with OCEN and GST Sahay to offer low-cost and fast loans. It also plans to introduce climate insurance products for its clients.
The Noida-based company said it has served over 85,000 borrowers across 100 tier-one and tier-two cities in India since its inception. It also completed the Reserve Bank of India’s (RBI) Sandbox for MSME Lending in November 2023, which utilises technology to disburse loans.
How FinAGG will use the funds
The company said it will use the latest funding to expand its offline and online presence, global outreach, and product innovation. It also said it is working on bringing blockchain activities related to underwriting, which will help it assess borrowers more accurately and efficiently.
What the investors said
- Nipun Kohli, Co-founder & CEO of FinAGG Technologies, said: “Having the likes of BlueOrchard, who are the leaders when it comes to climate-based impact programs, will help us drive the penetration of climate insurance to our client. Tata Capital, which is one of the biggest non-banking financial companies (NBFCs) in India, will help us scale our business operations to new heights, and SIDBI, which is a development bank owned by the Government of India (GOI), will help us grow GST Sahay through access to cheap funds.”
- Rajiv Sabharwal, Managing Director & CEO of Tata Capital, said: “Initiating a strategic investment drive, we selectively invest in businesses aligned with our goals. Our existing partnership with FinAGG in the SME supply chain has been successful, showcasing promising traction. We value FinAGG’s tech-driven efficiency and focus on distributor finance access.”
- Maria Teresa Zappia, Chief Impact Officer at BlueOrchard, said: “We are delighted to partner with FinAGG Technologies as they continue their journey of providing innovative financing solutions to MSMEs in India. We are impressed by their strong growth trajectory and their commitment to creating positive social and environmental impact.”