Fintech startup GrowXCD Finance has secured Rs 50 crore ($6 million) in a Series A funding round led by Lok Capital, of which the first tranche of Rs 30 crore has been closed.
The proceeds will be utilised to set up its initial team, develop technologies and expand its footprint over the next 12-18 months, GrowXCD Finance said in a press release.
Founded in 2022 by Muralidharan, GrowXCD focuses on micro, small and medium enterprises while addressing the credit gap for such businesses particularly outside of urban areas. According to the Chennai-based company, it has received the non-banking financial company licence from the Reserve Bank of India in April. It claims to operate 10 branches across Tamil Nadu, with its first branch in Thiruvannamalai.
The company aims to leverage technology in hitherto unexplored ways in order to improve access to finance for people in tier-2 and tier-3 locations.
Lok Capital invests across financial services, agri-tech, health-tech and climate-tech. It has invested in companies like Fincap, MoneyView, Aquaconnect and SuperBottoms.
