Fintech non-banking finance company Techfino Capital Pvt. Ltd. has raised ₹65 crore in a fresh equity round. The funding was co-led by Stellaris Venture Partners and Saison Capital, the investment arm of Japan’s Credit Saison. The round also saw participation from select angel investors who believe in Techfino’s long-term vision for MSME lending in India.
From Education Loans to MSME Credit
Founded in 2019, Techfino began its journey by offering unsecured education loans to students and working professionals. The company gained early profitability and built a reputation for strong underwriting. With this new funding, Techfino is now shifting its focus toward a larger and underserved segment—secured loans for small and medium-sized enterprises (SMEs).
The company plans to use the funds to expand its secured lending book, upgrade its technology, and form strategic lending partnerships.
- Key Growth Plans Ahead
- Techfino will allocate this funding to:
- Grow its secured MSME loan book from ₹140 crore to over ₹450 crore in the next 12–18 months.
- Strengthen co-lending arrangements with commercial banks to reduce borrowing costs.
- Enhance its AI-driven credit scoring system, integrating data like GST returns, digital transactions, and utility bill histories.
By doing so, the company aims to provide faster, more flexible loan solutions for India’s underserved businesses.
Strong Support from Investors
The funding round has drawn positive remarks from its investors. Stellaris Venture Partners highlighted Techfino’s ability to maintain high repayment discipline, even in challenging markets. Saison Capital expressed confidence in the company’s tech-first approach and its focus on sub-₹50 lakh loans, a critical space for MSME growth.
Both investors noted that Techfino is tapping into a space where traditional banks often hesitate to lend, particularly due to documentation issues or a lack of credit history.
Who They Are
Techfino was co-founded by Rajesh Panda, Jayaprakash Patra, and Ratikanta Satapathy, all of whom bring years of experience in banking and credit operations. The company is headquartered in Bengaluru, with branch presence in Delhi and Mumbai. It currently operates across 16 states and serves over 8,500 customers.
Their core loan products now include:
- Secured MSME loans ranging from ₹3 lakh to ₹50 lakh
- Unsecured education loans between ₹50,000 and ₹5 lakh
The company reported ₹275 crore in Assets Under Management (AUM) at the end of FY24, reflecting more than 100% growth year-on-year.
Bridging the MSME Credit Gap
India’s MSME sector remains credit-starved, despite its major role in the economy. Millions of small businesses struggle to access formal loans. Techfino’s model addresses this by offering collateral-backed loans with lower interest rates, quick processing, and digital onboarding.
The company has designed its operations to process loan applications in less than 72 hours, offering much-needed agility in a traditionally slow credit system.
Plans for Scaling and Funding
Beyond equity, Techfino plans to raise ₹300 crore in debt through securitisation and term loan facilities in the next year.
The company is working with multiple banks to establish low-cost lines of credit and aims to reduce its average cost of funds from 16% to below 9%.
Technology as a Differentiator
Techfino uses an in-house credit engine that pulls over 1,000 data points per borrower. The system combines rule-based filtering with machine learning to make fast and accurate lending decisions. This helps them maintain low default rates while keeping operational costs under control.
The team says that 85% of decisions are fully automated, with minimal human intervention.
Future Roadmap
Techfino plans to expand into industrial clusters like Coimbatore, Rajkot, and Ludhiana, where MSMEs play a vital role in exports and manufacturing. They are also testing invoice discounting products and plan to introduce merchant cash advances for online sellers later this year.
With this latest round of funding, Techfino joins the ranks of fast-growing fintech NBFCs helping India’s small businesses access reliable credit. The company aims to cross ₹1,000 crore in AUM and achieve sustainable profitability by FY27.
