Chennai-based GrowXCD, a firm that lends money to small businesses, raises Rs 200 crore funding

Chennai-headquartered GrowXCD Finance, a non-bank lender focused on small businesses, has raised Rs 200 crore in an equity funding round led by Swiss impact investment firm Blue Earth Capital and Prosus Ventures.

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Blue Earth Capital contributed Rs 105 crore, while Prosus invested Rs 70 crore, founder and managing director Arjun Muralidharan told ET. Existing backer Lok Capital added Rs 21 crore, taking its cumulative investment in GrowXCD to about Rs 93 crore, making it the single largest shareholder. UC Impower invested the balance Rs 4 crore.

The fresh infusion, Muralidharan said, will strengthen GrowXCD’s portfolio, expand its branch network, and enhance its technology backbone. “This capital will be good for the next 12–18 months of business,” he noted. The company’s net worth has now risen to Rs 308 crore.

Founded in 2022, GrowXCD lends to micro, small, and marginal enterprises (MSMEs) as well as salaried workers in tier-II and tier-III towns across southern India. The lender currently operates 67 branches across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Puducherry. Its assets under management (AUM) stand at Rs 300 crore, with a target of Rs 500 crore by March 2026.

The company also plans to open 40-50 new branches by March 2027 and is exploring expansion into Madhya Pradesh, Maharashtra, and Uttar Pradesh.

This marks the firm’s second equity raise in 2025, following a Rs 50 crore round in January from Lok Capital and UC Impower.