Chennai-based fintech startup GrowXCD Finance has raised Rs 50 crore in a Series A funding round led by Lok Capital, a firm known for its diverse investments in financial services and healthtech sectors. Of the total funding, the first tranche of Rs 30 crore has been closed, according to reports.
What is the purpose of fundraising?
GrowXCD Finance plans to utilize this investment to establish its initial team, develop new technologies, and expand its operations over the next 12-18 months. The startup also aims to enhance its reach and capabilities, particularly in tier-2 and tier-3 locations.
“This investment and partnership will provide the launch pad for GrowXCD to build a robust organisation which will serve the mission to accelerate the economic development of MSMEs and low-income households in the rural and semi-urban locations," said GrowXCD CEO Arjun Muralidharan.
What does GrowXCD do?
Founded in 2022 by Arjun Muralidharan, a veteran in MSME lending, GrowXCD Finance focuses on serving micro, small, and medium enterprises (MSMEs). The startup addresses the credit gap faced by these businesses, especially in rural and semi-urban areas.
GrowXCD, which received its non-banking financial company licence from the Reserve Bank of India in April, currently operates 10 branches across Tamil Nadu.
What's unique about GrowXCD?
GrowXCD said it aims to revolutionize access to finance through technology. The startup offers unique products like small business mortgage loans (GrowSubham) and short-term unsecured loans (GrowVyapaar), catering primarily to low-income households and sectors with minimal credit history.
“We have known Arjun for many years and are delighted to partner with him to build a leading financial institution from the ground up. We understand the MSME lending space in the country well, and believe that together we have the opportunity to create a differentiated business in the secured MSME space,” said Venky Natarajan, managing partner, Lok Capital.
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