Seeds Fincap Secures ₹50 Crore Pre-Series B Funding to Power MSME Growth in India

In a move that strengthens its position in India’s competitive lending market, Gurugram-based non-banking financial company (NBFC) Seeds Fincap has raised ₹50 crore in a Pre-Series B funding round. The round was led by existing investors Z47 and Lok Capital, with fresh participation from Norinchukin Capital and Alteria Capital, setting the tone for a larger Series B fundraise later this year.

The funding marks a critical step in Seeds Fincap’s mission to address the country’s massive ₹30 trillion credit gap for micro, small and medium enterprises (MSMEs), a sector widely regarded as the backbone of India’s economy.

From Startup to Scalable Lender

Launched in 2021 by Subhash Chandra Acharya and Avishek Sarkar, Seeds Fincap has quickly grown into a high-velocity lender with a network of 120 branches across eight high-growth states. Its business model blends advanced analytics, strong field control, and local market understanding to extend formal credit to entrepreneurs who are often overlooked by traditional banks.

This approach has allowed Seeds to reach more than 50,000 borrowers, many of whom are accessing institutional finance for the first time. The loans have been used for working capital, business expansion, and stabilising livelihoods — often transforming small enterprises into sustainable growth stories.

Numbers That Back the Story

While the lending space for MSMEs is known for its challenges, Seeds Fincap’s growth has been both rapid and disciplined. The company closed FY25 profitably, having disbursed over ₹1,000 crore in loans and managing ₹500 crore in assets under management (AUM).

Crucially, the lender has kept non-performing assets (NPAs) below 2%, a rare feat in this segment. Its cash flow–based underwriting and tech-enabled operations have played a key role in balancing speed with credit quality.

The company is also diversifying its portfolio, with Loan Against Property (LAP) projected to account for nearly 20% of its AUM in the near future.

A Sector Ripe for Change

India’s MSME sector contributes significantly to GDP and employment but remains underserved by formal credit channels. Industry estimates peg the financing gap at ₹30 trillion, leaving millions of small businesses reliant on informal lenders with high interest rates.

By using technology to streamline sourcing, underwriting, and collections — and by embedding a localised, branch-driven approach — Seeds Fincap is positioning itself as a credible alternative to both traditional banks and unregulated moneylenders.

Investor Confidence Grows Stronger

For existing investors, the fresh funding is a vote of confidence in Seeds’ execution capabilities. “Seeds Fincap’s deep focus on tech-enabled field operations and disciplined credit underwriting has delivered superlative asset quality, even in a testing market,” said Anish Patil, Vice President at Z47.

New backers echoed the sentiment. Hiroki Kawabata, Director at Norinchukin Capital, described the company’s work with underserved MSMEs as “meaningful change in action,” while Ankit Agarwal, Managing Partner at Alteria Capital, praised its “mission-driven approach” and grassroots trust-building.

The ₹50 crore infusion will be used to expand into new and underserved regions, strengthen the lender’s technology and risk infrastructure, and develop a broader range of loan products for small businesses.

With Unitus Capital advising on the upcoming Series B round, Seeds Fincap is preparing to accelerate its growth — not just as a lender, but as a partner in the long-term success of India’s small entrepreneurs.