Techfino Secures Rs 65 Crore in Funding for MSME Lending Expansion

Techfino, a Bengaluru-based non-banking financial company (NBFC), has successfully raised Rs 65 crore (approximately $7.5 million) from Stellaris Venture Partners and Saison Capital, the venture division of Credit Saison. This funding is earmarked for enhancing the company’s branch network, upgrading its technology platform, and expanding its secured lending business for micro, small, and medium enterprises (MSMEs).

Focus on MSME Lending in Tier II and III Cities

Techfino provides Loan Against Property (LAP) specifically designed for MSMEs in tier II and III cities through a branch-led approach. The company operates in several Indian states, including Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh. Additionally, Techfino offers education loans via a B2B2C model, collaborating with educational service providers.

Founders and Technology Integration

The company was established by experienced professionals: Jayaprakash Patra (formerly of ICICI Bank and ING), Rajesh Panda (formerly of Standard Chartered), and Ratikant Satapathy (formerly of Bajaj Finance). Techfino relies on its proprietary technology platform for underwriting and collections. This platform also integrates external APIs to verify borrower information and enhance risk evaluation.

Loan Disbursement and Growth Plans

According to Techfino, it has successfully disbursed over 100,000 loans and has surpassed Rs 200 crore in assets under management (AUM). The firm has maintained profitability since its inception and aims to double its branch count within this year while further increasing disbursements and its secured lending portfolio.

Future Expansion and Portfolio Development

Techfino envisions expanding its operations significantly over the next 3 to 5 years, with a particular focus on building a robust LAP portfolio.