Prayaan Capital: Innovative MSME Lending Platform
Prayaan Capital, under the leadership of Rangarajan Krishnan (Ranga), the former JMD and CEO of the publicly listed Five-Star Business Finance, has successfully secured Rs 110 crore in its Series A funding round led by Peak XV Partners. This financial infusion will be allocated towards developing a lending platform, enhancing the team, and increasing its footprint in vital MSME markets throughout India, as per Prayaan Capital’s announcement.
Rangarajan Krishnan has recently taken control of Prayaan Capital, with a vision to evolve it into a modern MSME lending platform. His objective is to improve credit access for small businesses in India by integrating robust on-ground underwriting skills with a technology-driven approach across sourcing, underwriting, and collections.
The emphasis will be on catering to underserved MSMEs in India, which continue to grapple with an estimated $300 billion credit shortfall. Prayaan Capital aims to construct an institution that marries traditional branch-focused distribution methods with a tech-enhanced operational model. The strategy is to harness digital tools and profound customer insights to enhance credit accessibility and serve small businesses in a more efficient manner.
Prayaan Capital is committed to being a technology-centric MSME lending platform that prioritises credit accessibility for small businesses in India. The company combines substantial underwriting expertise with contemporary technology to support the needs of underserved entrepreneurs across the nation.
Over the past two decades of engagement in the region, Peak XV has expanded to manage over $10 billion in assets across 16 funds while investing in more than 450 companies. The portfolio has achieved more than 35 IPOs alongside several successful mergers and acquisitions to date.
