Rural fintech firm Navadhan has successfully secured $5 million (approximately ₹40 crore) in a pre-Series A funding round, led by Prime Venture Partners. Notably, existing investors Gemba Capital and Varanium NexGen Fintech Fund also participated in this funding initiative.
The freshly raised capital will play a pivotal role in advancing Navadhan’s AceN tech platform. This platform serves as a crucial link connecting small rural businesses with Non-Banking Financial Companies (NBFCs) and banks. The focus is on expanding both the distribution network and the service delivery model.
Navadhan, the brainchild of co-founders Nitin Agrawal, Vijay Haswani, Anirudh Ramakuru, and Amit Biswal, boasts a unique position in the market. Nitin Agrawal, a former executive at ICICI Bank with a rich background in setting up rural finance businesses, brings valuable expertise to the team. Having previously served as the CEO of Spandana Sphoorty, Agrawal is well-versed in the nuances of the industry.
The cornerstone of Navadhan’s success lies in its AceN tech platform. This innovative solution facilitates end-to-end customer fulfilment, encompassing sourcing, digital enrolments, credit underwriting, servicing, payments, and collections. With credit lines exceeding ₹300 crore from 20 banks and NBFCs on its platform, Navadhan is making significant strides in empowering rural businesses.
Expressing enthusiasm about the recent funding, Nitin Agrawal commented, “We are excited to have [Prime VP] join our journey in building a tech-led business model with a revenue-first approach and a vision of creating wealth for rural entrepreneurs. The new fundraise will add tailwinds to our efforts at building solutions to bring such small-businesses to the formal economy. We will continue to build it for banks, NBFCs to leverage on the regulatory advantage of priority sector assets.”
Prime Venture Partners recognises the immense potential in Navadhan’s approach. The firm’s investment aligns with Navadhan’s mission to address the credit gap prevalent in India’s Micro, Small, and Medium Enterprises (MSME) sector. Nitin Agrawal and his co-founders, alongside the Navadhan team, have demonstrated a viable and tech-driven model for distribution, underwriting, and robust collections. This involves leveraging co-lending to achieve meaningful scale, contributing to the growth of the critical MSME sector in the country.