Techfino, a non-banking financial company based in Bengaluru, has raised Rs 65 crore in funding. The investment comes from Stellaris Venture Partners and Saison Capital, aimed at expanding Techfino’s secured lending services to underserved micro, small, and medium enterprises (MSMEs) across India.
The capital will be used to broaden the company’s branch network, enhance its proprietary technology infrastructure, and increase loan disbursements in Tier II and III cities. Techfino operates in Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh, and plans to grow its presence in rural and semi-urban areas.
Focus on underserved MSMEs
Techfino provides loans against property (LAP) to MSMEs and education financing through a B2B2C model. Since its inception, the company claims to have disbursed more than 100,000 loans, managing over Rs 200 crore in assets under management (AUM). It has remained profitable since launch.
Rajesh Panda, Co-founder at Techfino, emphasized the need for formal credit access among MSMEs. “Out of the 640 million registered MSMEs in India, nearly 390 million remain outside the formal credit system,” Panda said. “This group, particularly in non-metro regions, is estimated to generate a quarterly credit demand of Rs 200,000 crore.”
Built by former banking professionals
Founded in 2019, Techfino was started by Rajesh Panda (formerly with Standard Chartered), Jayaprakash Patra (ex-ICICI Bank, ING), and Ratikant Satapathy (previously at Bajaj Finance). The company positions itself as a tech-enabled alternative to traditional lending models, focusing on data-driven risk assessment and operational efficiency.
“We’ve developed our technology platform internally,” said Satapathy. “It integrates multiple external APIs for data verification, which helps in faster underwriting and improved turnaround time.”
Investor interest in MSME lending
Stellaris Venture Partners sees potential in Techfino’s credit model. “The MSME lending gap in India presents a large opportunity,” said Ritesh Banglani, Partner at Stellaris. “Techfino has shown that it’s possible to build a profitable, high-quality business in this segment by combining strong underwriting and efficient collections with technology.”
Saison Capital, the venture arm of Tokyo-listed Credit Saison, also participated in the round. The firm continues to invest in fintech companies supporting underserved economic segments across Asia.
What lies ahead
With the new funding, Techfino aims to double its branch network and expand its secured lending capacity. The company intends to strengthen its foothold in rural and semi-urban markets over the next few years, aligning with its broader vision for the coming financial year.
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By Proptechbuzz
By Ravi Kumar
