New Delhi, Oct. 1 -- Chennai-headquartered non-banking finance company GrowXCD Finance has raised around Rs 200 crore (around $22.5 million) from impact investment firm Blue Earth Capital and emerging technology focussed Prosus Ventures, along with participation from existing investors Lok Capital and UC Impower, in a primary funding round.
Prior to this, Lok Capital and UC Impower had invested Rs 50 crore (around $5.6 million) in the company in August.
Founded in 2022 by Arjun Muralidharan, GrowXCD Finance is an RBI-registered non-banking finance company (NBFC) that focuses on providing credit to micro, small, and medium enterprises (MSMEs) and low-income households. The company positions itself as a lender of small loans that create a large impact, especially among underserved communities. It operates 60 branches across Tamil Nadu, Karnataka, Andhra Pradesh, and Puducherry.
The company provides capital to small business owners and cash-salaried employees through mortgages. Its loan book for LAP (loan against property) exceeds Rs 300 crore. It obtained its NBFC license nearly 2.5 years ago.
"GrowXCD's mission to bridge the credit gap for underserved MSMEs in India aligns closely with our investment philosophy," said Rohan Ghose, director, private equity partnerships at Blue Earth Capital.
"India's MSMEs form the backbone of our economy, yet remain significantly underserved on credit. With rapid digital adoption, greater formalization, and supportive government initiatives, we see a massive opportunity to build tech-led lending solutions for this segment," said Gaurav Kothari, principal investor, Prosus India.
In the financial year through March 2024, the company's revenue grew sixfold to Rs 3.75 crore from about Rs 60.7 lakh in FY23. However, despite the sharp revenue jump, losses also expanded to Rs 89 lakhs in FY24 from Rs 26 lakhs in the year before.
Unitus Capital acted as the financial advisor to GrowXCD Finance on this transaction.
Published by HT Digital Content Services with permission from VC Circle.