GrowXCD Finance Secures Rs 200 Crore in Series B Round
GrowXCD Finance is initiating a Series B funding round, aiming to raise Rs 200 crore ($22.7 million), with Swiss-based Blue Earth Capital leading the investment. The funding also sees involvement from Prosus as well as existing investors such as Lok Capital and UC Impower. Earlier this year, GrowXCD successfully raised Rs 50 crore in its pre-Series B round, backed by Lok Capital and UC Impower.
The board at GrowXCD officially approved the issuance of 1,56,92,344 Series B CCCPS at an issue price of Rs 127.61 each, facilitating a raise of Rs 200.25 crore, according to a regulatory filing accessed from the Registrar of Companies (RoC). In this round, Blue Earth Capital is set to contribute Rs 105 crore ($12 million), while Prosus will invest Rs 69.4 crore ($7.9 million). Existing investor Lok Capital is set to add Rs 21.3 crore ($2.4 million), alongside UC Impower with Rs 4.26 crore and Anshul Agarwal bringing in Rs 25 lakh.
Additionally, the filing indicated an increase of 10,00,000 options valued at Rs 12.76 crore to the company’s Employee Stock Option Plan (ESOP), resulting in a total ESOP pool value of approximately Rs 43 crore. Based on estimates from Startup Superb, the non-banking financial company’s (NBFC) valuation has surged to roughly Rs 630 crore ($71.5 million), a significant increase from Rs 215 crore in the previous round.
Overview of GrowXCD Finance
Founded in 2022 by Arjun Muralidharan and Sathish Kumar Vijayan, GrowXCD largely focuses on providing credit solutions to two primary sectors: micro, small and medium enterprises (MSMEs) as well as low-income households. The company’s portfolio includes small property-backed mortgage loans and short-term unsecured business loans.
According to various sources within startup data intelligence, the Chennai-based company had previously raised approximately $12 million before the current funding round. Post allotment, Blue Earth Capital is expected to hold a 16.7% stake, Prosus will possess 11.04%, while Lok Capital continues to be the largest shareholder with 30.84%.
Financial Performance
For the fiscal year ending March 2025, GrowXCD reported a significant revenue increase over seven times, reaching Rs 27 crore, up from Rs 3.73 crore in FY24. However, during the same timeframe, the company’s losses expanded to Rs 8.17 crore.