Namdev Finvest Raises $37 Million for MSME Lending

Namdev Finvest, a non-banking finance company based in Jaipur, has successfully secured $37 million (around Rs 324 crore) through a mixture of listed non-convertible debentures (NCDs) and external commercial borrowings (ECB). This funding round included contributions from notable investors such as FMO, IIX, Franklin Templeton AIF India, and Symbiotics.

Investment Breakdown

FMO, the Dutch Entrepreneurial Development Bank, played a significant role by investing $20 million (approximately Rs 180 crore). Additionally, IIX’s Women’s Livelihood Bond 7 (WLB7) made an investment of $8 million (around Rs 71 crore). Franklin Templeton Alternative Investments Fund India (Franklin Templeton AIF) also contributed $2.3 million, while Symbiotics provided $6.5 million.

Previous Fundraising Highlights

Earlier in January 2024, Namdev Finvest raised $15 million in a Series B funding round, co-led by British International Investment (BII), LC Nueva AIF, and existing investor Incofin India Progress Fund. Prior to this, the company secured $4.7 million in September 2021 and $7.5 million in October 2022.

Funding Utilisation

The newly acquired funds will primarily be used to enhance its lending operations aimed at micro, small and medium enterprises (MSMEs) in rural and semi-urban markets throughout India, as detailed in a recent press release.

Company Overview

Founded in 2013 by Jitendra Tanwar, Namdev Finvest offers loans to various sectors, including MSMEs, vehicle owners, climate-friendly commuters, rooftop solar customers, and women entrepreneurs. The organisation collaborates with public, private, and small finance banks, as well as international financial institutions and domestic lenders, to diversify its funding sources.

Market Focus

Namdev Finvest mainly targets borrowers from Tier III and smaller cities across India and operates in nine different states. The company is dedicated to improving access to credit, fostering employment growth, and promoting financial inclusion.

Sustainability Initiatives

According to Namdev Finvest, the platform is geared towards supporting MSME lending with a strong emphasis on climate-aligned and green finance. The company has plans for further expansion to assist entrepreneurs all over the nation.