Bengaluru-based non-banking financial company (NBFC) Techfino has successfully raised INR 65 Cr (approximately $7.5 million) in its latest funding round. The investment was led by Stellaris Venture Partners and Saison Capital, with participation aimed at propelling the NBFC’s growth across India’s Tier II and Tier III cities.
Expansion Plans and Technology Enhancement
With the newly secured capital, Techfino aims to scale its branch network, strengthen its internally developed technology platform, and streamline operations to serve more customers efficiently. The funding will also be used to enhance underwriting capabilities and reduce turnaround times (TAT) through deeper automation and data integration.
Techfino’s cofounder Ratikant Satapathy highlighted the importance of the company’s proprietary technology in their operations. He stated, “At Techfino, we leverage a robust technology platform which we have internally developed from scratch. This platform integrates multiple external APIs to obtain and verify data critical for underwriting. This technology has resulted in higher efficiency, better data-driven risk assessment and lower TAT.”
Focus on MSMEs and Education Loans
Founded in 2019 by Ratikant Satapathy, Rajesh Panda, and Jayaprakash Patra, Techfino provides loan solutions for medium, small, and micro enterprises (MSMEs), primarily focusing on loans against property. The NBFC’s customer base is concentrated in India’s emerging markets, particularly in Tier II and Tier III cities, where access to formal credit remains a challenge.
In addition to MSME lending, Techfino has also forayed into the education financing space. The company partners with educational institutions to provide students and parents with flexible loan options, thus expanding financial inclusion in the education sector.
Driving Financial Inclusion with Data-Driven Lending
Techfino’s model stands out due to its emphasis on data-driven lending. By integrating external APIs and alternative data sources, the company ensures accurate risk profiling and faster loan disbursement. This approach enables Techfino to offer competitive rates while managing credit risk effectively.
The fresh capital infusion is expected to support Techfino in reaching underserved markets and promoting financial inclusion for both small businesses and students. The NBFC plans to expand its workforce, upgrade customer support systems, and improve its digital loan processing capabilities.
Investor Confidence and Market Opportunity
The backing from Stellaris Venture Partners and Saison Capital signals strong investor confidence in Techfino’s business model and market potential. With India’s MSME sector continuing to grow and demand for alternative credit solutions on the rise, Techfino is well-positioned to tap into this expanding segment.
As traditional banking channels often fall short in meeting the financial needs of small enterprises and education seekers, Techfino’s innovative approach could bridge the credit gap in rural and semi-urban India.
Conclusion
With the latest funding round, Techfino is set to accelerate its mission of empowering MSMEs and students with accessible and efficient financial services. As it continues to scale operations and enhance its technology-driven underwriting system, the NBFC is poised to play a key role in India’s digital lending landscape.
