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NBFC firm BizLoan focusing on small businesses raises Rs 35 crore in funding

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Vivek Vishwakarma
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Bizloan, a non-banking finance company focused on extending credit to small businesses, has raised Rs 35 crore (around $4 million) in a Series A funding round led by the Michael & Susan Dell Foundation and BLinC Invest. 

Resurgent India acted as an advisor to Bizloan for this round.

Expanding reach to underserved markets

The fresh funds will help the NBFC firm expand into underserved markets and enhance its suite of loan products.

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Bizloan said it aims to support over 2,500 micro and nano enterprises in the next 12 months, primarily in regions where formal credit availability is limited.

Interestingly, the Gurugram-based firm has already disbursed about Rs 774 crore in loans through its 26-branch network, providing financial assistance to more than 3,000 entrepreneurs across Haryana, Uttar Pradesh, the National Capital Region, Karnataka and Rajasthan.

“The current round of investment shall help the company enter the next phase of fast-paced growth by expanding its footprint in Bharat,” said Rahul Jain, chief executive and co-founder of Bizloan.

"We are actively investing in technology as a driver for better operational efficiency. The pedigree of investors on board shall also help us to develop and nurture sustainable talent which will further help us achieve the vision of our Company," Jain added.

Employing ABC methodology

Bizloan employs what it calls an ABC (Asset, Behaviour, Cashflow) methodology to evaluate borrowers, many of whom have informal income or are entirely new to credit. By leveraging its cashflow underwriting capabilities and innovative credit assessment models, the firm hopes to close the credit gap for small enterprises looking to scale.

“Indian Tier II and Tier III cities are witnessing robust growth, which underscores a monumental credit gap as micro-entrepreneurs seek to expand,” said BLinC Invest Founder and Managing Director Amit Ratanpal.

“Our partnership with the Bizloan team is geared toward bridging this gap by championing technology-focused solutions in credit underwriting.”

Rakesh Goyal, director at the Michael & Susan Dell Foundation, added that access to formal credit for smaller businesses remains a critical driver of economic progress.

"This funding marks a crucial step forward in our mission to empower micro and nano enterprises, providing them with the capital and financial tools they need to fuel business growth, increase household incomes, and create employment opportunities."

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