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 plan to build an artificial intelligence-led lending business for micro, small and medium enterprises, beginning with the acquisition of a majority stake in Bizloan.
Gurugram-based Bizloan is a non-banking financial company focused on secured MSME lending. It operates across five states through more than 35 branches and manages assets under management of over Rs. 2.35 bn. The company began operations in 2018 and was founded by bankers Rahul Jain, Abhishek Mishra and Vikram Diwan.
Vegafin is developing a technology-led lending platform that will combine AI-based underwriting, digital workflows and data-led credit decisions with an on-ground distribution network. The company said the model is intended to improve turnaround times, strengthen risk selection and reduce operating costs while widening access to formal credit for underserved MSMEs.
The transaction is the first step in Vegafin's platform strategy. The company, led by Bhaskar and its financial investors, has entered into definitive agreements to acquire a majority stake in Bizloan, subject to regulatory approvals and customary closing conditions.
Bizloan is currently backed by the Michael & Susan Dell Foundation, BLinC Invest and Mohan Enterprises. BLinC Invest will remain an investor, while Mohan Enterprises and the Michael & Susan Dell Foundation will exit. The investment platform will use AI and data from multiple sources to assess MSME businesses, according to the company. Premji Invest, Norwest and Lok Capital said the partnership would support technology-driven expansion of credit access for small businesses, particularly in semi-rural and rural markets. EY Investment Banking acted as the exclusive financial adviser on the transaction.
Published by HT Digital Content Services with permission from Construction World.