New Delhi, Oct. 21 -- Vegafin Capital, an MSME lending platform founded by former ICICI Bank executive Bijith Bhaskar, has raised Rs 1,000 crore (about $106 million) from Premji Invest, Norwest Venture Partners, and Lok Capital.

The funding will enable Vegafin to acquire Gurugram-based non-banking financial company (NBFC) Bizloan and build an AI-first MSME lending platform, according to a press note.

Vegafin said the platform will focus on AI-driven underwriting, digital workflows and data-led credit decisioning, supported by an extensive on-ground distribution network. It will enable faster turnaround, sharper risk selection and lower operating costs while scaling access to underserved micro, small and medium enterprises (MSMEs).

"There is a clear need for a pan-India player with a strong MSME focus, efficient cost of service and ability to price risk accurately," Vegafin's chief executive officer and managing director Bhaskar said in the note. "Our platform aims to fill this need by leveraging technology to provide accessible and affordable secured credit for various requirements across the lifecycle of MSMEs," he added.

As part of the plan, Vegafin, led by Bhaskar and backed by the financial investors, has entered into definitive agreements to acquire a majority stake in Bizloan. The deal is subject to regulatory approvals and customary closing conditions.

EY Investment Banking acted as the exclusive financial advisor on the transaction.

Bhaskar spent more than two decades at ICICI Bank, where he held leadership roles across retail banking, digital banking, credit cards, consumer finance and merchant ecosystems.

Founded in 2018 by veteran bankers Rahul Jain, Abhishek Mishra and Vikram Diwan, Bizloan operates over 35 branches across five states and manages assets under management (AUM) worth Rs 235 crore.

Its investors include Michael & Susan Dell Foundation, BLinC Invest and Mohan Enterprises. BLinC Invest will remain an investor in Bizloan, while Mohan Enterprises and the Michael & Susan Dell Foundation will exit.

Published by HT Digital Content Services with permission from VC Circle.