Rural Lending Startup SavaGram Raises $10.5 Million From Elevation Capital, Others

  • The startup will use the funding to expand into other geographical areas and launch new offerings.
  • In February 2020, Savagram Fincare had raised Rs 25 crore in seed funding from Elevar Equity.

Mumbai-based rural lending startup Savagram Fincare has raised $10.5 million (or about Rs 77 crore) in a Series B funding round led by Elevation Capital (formerly SAIF Partners), along with the participation from the existing investor Elevar Equity. 

The startup will use the funding to expand its presence into other geographical areas, launch new offerings, and strengthen its technology platform.

In February 2020, Savagram Fincare had raised Rs 25 crore ($3.5 million) in seed funding from a global investor Elevar Equity. Following the current round, the startup funding stood at $13.9 million.

Founded in 2018 by industry veterans Utpal Isser and Sameer Mishra, Savagram Fincare provides livelihood up-gradation for aspiring households based in Rural and Semi-urban areas. To automate its lending decision, the startup has developed and deployed proprietary tools like scorecards for various customers based on target areas.

It provides loan facilities to households including small business loan, farmer loan, housing loan, personal loan, and gold loan by partnering with financial institutions such as Northern Arc, AU Small Finance Bank, IDFC First Bank, Western Cap, among others.

Commenting on the funding, Utpal Isser, Co-Founder & CEO of SarvaGram said, “We are delighted to have two highly discerning private equity investors as our partners in this journey to create unique financial and productivity-enhancing solutions for the emerging middle-classes in rural India, a journey which really starts from recognizing that the needs of this aspirational, productive segment of rural economy are specific and need bespoke attention and solutions to further aid their growth.”

Also Read: 6 Simple Tips To Secure Your Small Business Loan [2021 Guide]

Speaking on the investment, Ms. Jyotsna Krishnan, Managing Partner, Elevar Equity said, “The massive opportunity that rural India presents is well known, however, building and scaling distribution in the rural context requires a deep understanding of these markets and of rural households.”

Mridul Arora from Elevation Capital said, “We deeply resonate with SarvaGram’s mission to build a household-focused lender catering to the aspirations of rural India and are excited to be partners on their journey.”

Apart from SavaGram, Elevation Capital has invested in several other similar startups such as Aye Finance, Capital Float, CashFlo, among others.

Follow IndianStartupNews on FacebookInstagramTwitter for the latest updates from the startup ecosystem.

More On IndianStartupNews