India, Feb. 26 -- Chennai-based NBFC Prayaan Capital has raised Rs.110 Cr (about $12.1 Mn) in its Series A funding round led by Peak XV Partners.

It will use the capital to build its lending platform, deepen its footprint in the Indian MSME markets, and for hiring.

Founded in 2018 by Madhan Mohan and Akash Chelvam, Prayaan Capital offers business loans to small and medium enterprises via its technology-enabled platforms. Its business loan offerings are tailored for MSMEs from manufacturing, trading and services sector, while it also provides long-term secured loans by mortgage of commercial and residential property.

Rangarajan Krishnan, the former MD and CEO of Five Star Business Finance, recently acquired a controlling stake in Prayaa...