Updated January 18th, 2024 at 17:43 IST
FinAGG Technologies bags $11 million led by Blue Orchard, Tata Capital
The fintech company operates in Micro, Small & Medium Enterprises cash flow financing
Fintech fervour: Fintech company FinAGG Technologies on Thursday announced that it raised Rs 91 crore or $11 million led by BlueOrchard and Tata Capital Limited.
The funding comes as part of a bet by investors on finance technology as a category, and enablers for businesses in the segment.
Other investors participating in the Series A funding round include SIDBI (Small Industries Development Bank of India) and existing investor Prime Venture Partners, the company said.
FinAGG also secured capital from Gray Matter Capital through Non-Convertible Debentures (NCDs), aimed at empowering women entrepreneurs financially.
The fund will be used towards expanding FinAGG’s omni-channel presence and enhancing global outreach while working on product innovation.
FinAGG operates in the MSME Cash Flow financing space. Spearheading the use of technologies like Goods and Services Tax (GST) Sahay for supply chain financing, the fintech completes sandboxes for the Reserve Bank of India and is also integrated with the India stack of Aadhar, GSTN, Unified Payments Interface (UPI) and the like.
“We have been able to bring investor partners that share high synergy with us and are experts in their domains…the money that we have raised will go into bringing disruptive changes in this industry,” Nipun Kohli, Co-founder and CEO of FinAGG Technologies said.
Set up in 2019, FinAGG has onboarded major consumer brands, currently collaborating with over 25 banks, NBFCs, and entities supporting MSME development in India.
"The funds secured in this round are pivotal for our future endeavors. They will play a crucial role in expanding our reach pan India, aligning seamlessly with our ambitious goal of positively
impacting over 2.5 lakh lives by March 2025,” Srini Ramki, Co-founder and CTO of FinAGG Technologies said.
Notably, India’s MSME landscape consists of over 6.3 crore micro, small, and medium-sized enterprises, but a finance gap in the supply chain is estimated at Rs 60,000 crore.
FinAGG said it has disbursed over Rs 5,230 crore to over 85,000 MSMEs till date, with around 20 per cent of the enterprises led by women entrepreneurs.
Published January 18th, 2024 at 16:23 IST