Mumbai, Oct. 27 -- Premji Invest, Norwest and Lok Capital have invested Rs. 10 bn in Vegafin, an MSME lending platform founded and promoted by former ICICI Bank executive Bijith Bhaskar. The investors will use the platform to build an AI-first lending business for micro, small and medium enterprises (MSMEs), beginning with the acquisition of a majority stake in Bizloan.

Vegafin said its planned platform will combine artificial intelligence-led underwriting, digital workflows and data-based credit decisions with an on-ground distribution network. The approach is intended to improve turnaround times, strengthen risk selection and reduce operating costs while expanding formal credit access for underserved MSMEs.

The acquisition is the first step in Vegafin's platform-building strategy. Bizloan is a Gurugram-based non-banking financial company (NBFC) focused on secured MSME lending and operates across five states through more than 35 branches. It manages assets under management of over Rs. 2.35 bn and began operations in 2018.

Bizloan was founded by bankers Rahul Jain, Abhishek Mishra and Vikram Diwan. Its existing investors include the Michael & Susan Dell Foundation, BLinC Invest and Mohan Enterprises. BLinC Invest will continue as an investor, while Mohan Enterprises and the Michael & Susan Dell Foundation will exit their investments following the transaction.

Bhaskar said Vegafin planned to develop a hybrid technology-led lending model using data from multiple sources to assess MSME credit risk more quickly and accurately. Premji Invest said technology could reduce lending friction, while Norwest described Bizloan as a strong foundation for a technology, AI and data-led lender. Lok Capital highlighted the continuing gap in formal credit access among small businesses and lower-income households in semi-rural and rural India. The transaction remains subject to regulatory approvals and customary closing conditions, with EY Investment Banking acting as exclusive financial adviser.

Published by HT Digital Content Services with permission from Construction World.