New Delhi, Oct. 28 -- Loan-against-property lender Optimo Capital has raised $17.5 million in a new round of funding led by the startup's founder Prashant Pitti with participation from existing investors Blume Ventures and impact venture capital firm Omnivore.

Alongside the equity raise, the non-banking financial services startup has also raised just under $12.5 million in debt from IDFC Bank and Axis Bank.

With the new round, Optimo's total equity fundraising stands at $27.5 million.

The Blume-backed company targets medium and small business entrepreneurs in tier-2 and tier-3 cities of India providing them loans against commercial or residential property as collateral. Such loans are typically extended at lower rates compared to unsec...