SarvaGram Secures Rs 565 Crore in Series D Funding Round

Rural-focused credit startup SarvaGram has successfully raised Rs 565 crore (around $67 million) in a Series D funding round. This round was led by Peak XV Partners, with contributions from existing investors including Elevation Capital, Elevar Equity, Temasek, and TVS Capital. Specific details about the funding have not been disclosed, although Startup Superb has reviewed regulatory filings to gain insight into aspects such as the round breakdown, shareholder distribution, and the company’s current valuation.

Funding Breakdown and Valuation Insights

In November of the previous year, SarvaGram’s board approved the issuance of 21,857 Series D CCPS and 20 equity shares, priced at Rs 2,51,431.22 each, enabling the firm to raise Rs 550 crore (around $65.2 million). With an additional allotment of Rs 15 crore, the total for this funding round reached Rs 565 crore ($67 million), based on filings with the Registrar of Companies (RoC).

Peak XV Partners took the lead in this funding, investing Rs 340 crore ($40.3 million), with existing investors Elevation Capital and Elevar Equity contributing Rs 80.76 crore ($9.58 million) and Rs 68 crore ($8 million), respectively. Temasek and TVS Capital also participated, investing Rs 45.48 crore ($5.4 million) and Rs 30.78 crore ($3.6 million).

SarvaGram’s Valuation Surge

According to estimates from Startup Superb, SarvaGram’s valuation has doubled to Rs 1,785 crore ($212 million), up from Rs 790 crore ($94 million) during the previous $35 million Series C round.

Credit Solutions for Rural Households

Founded in 2019 by Utpal Isser and Sameer Mishra, SarvaGram provides a variety of credit solutions aimed at rural households. Their offerings include business, farm, personal, home, and gold loans. The company also extends insurance and farm mechanization services via its SarvaMitra network, which allows rural customers to access high-quality farming equipment such as cultivators, rotavators, and harvesters at affordable prices. As highlighted on its website, SarvaGram has already reached over 1.5 lakh households and more than 170 shops, along with over 630 SarvaMitra franchises operating in more than 38,000 villages.

Funding History and Stake Distribution

According to various sources on startup data platforms, SarvaGram has raised over $116 million across several funding rounds. Post this latest funding, Elevar Equity has emerged as the largest external stakeholder with a 23.78% holding, followed by Peak XV Partners at 19.05% and Elevation Capital at 18.40%. Co-founders Utpal Isser and Sameer Mishra retain stakes of 11.00% and 7.05%, respectively.

Recent Financial Performance

The Pune-based fintech firm has reported a staggering year-on-year growth of 2.3X in its operating revenue, reaching Rs 170 crore during the fiscal year ending in March 2024. Additionally, the company has successfully reduced its losses by 30%, amounting to Rs 19.75 crore during the same timeframe.

Market Competition

SarvaGram faces competition from Jai Kisan, which recently raised $50 million in a Series B round in July 2022. Another competitor, the agri-fintech startup Arya.ag, secured $30 million in debt funding in January.