Seeds Fincap raises $8.5 Mn led by Lok Capital and Z47

Non-Banking Financial Company (NBFC) Seeds Fincap has raised over $8.5 million in a Series A funding round led by Lok Capital and Matrix Partners India (now Z47).

The funds will enable Seeds Fincap to expand its lending capabilities, enhance its technological infrastructure, and broaden its branch footprint, the company said in a press release.

Seeds Fincap aims to meet the financial needs of medium and small business owners with tailored credit products. The Gurugram-based lender provides secured and unsecured loans to MSMEs ranging from Rs 1-5 lakhs in ticket size.

The company employs a rigorous credit assessment process to evaluate cash flows and offer right-priced loans, while leveraging technology to monitor risk and lower operating expenses.

Established in 2021 by Subhash Acharya and Avishek Sarkar, Seeds Fincap has built a network of 90 branches across 8 states, with a significant presence in UP, Bihar, Rajasthan, and Haryana. Over three years, Seeds Fincap claims to have disbursed over Rs 600 crore in loans, serving more than 50,000 customers and has expanded its loan book to over Rs 330 crore.

The NBFC has also built a diversified liability base with over 35 lending partners, including AU Small Finance Bank, Tata Capital, IDFC Bank, Yes Bank, and Vivriti Capital.

Last month, venture capital firm Matrix Partners renamed its Indian arm to Z47. The fund’s operations in the US will continue as Matrix, an early-stage venture capital fund with headquarters in Boston and San Francisco.