FinAGG Technologies, which offers financing to MSMEs, has successfully raised $11 million in its Series A funding round. This financing was co-led by global impact investment manager BlueOrchard and Tata Capital Limited, with participation from the Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partners. 

Additionally, FinAGG secured capital from Gray Matter Capital through Non-Convertible Debentures (NCDs) to empower women entrepreneurs financially. The latest funds infusion will be directed towards expanding FinAGG's offline and online presence, enhancing global outreach, and driving product innovation.

Nipun Kohli, co-founder and CEO of FinAGG Technologies, said, "Having the likes of BlueOrchard, who are the leaders when it comes to climate-based impact programs, will help us drive the penetration of climate insurance to our client, Tata Capital, which is one of the biggest NBFC in India, will help us scale our business operations to new heights and SIDBI, which is a development back owned by GOI, will help us grow GST Sahay through access to cheap funds."

He added that the raised capital will go into bringing disruptive changes in the fintech industry. "Our product and engineering department is currently working on bringing blockchain to an industry that worked on conventional pen and paper underwriting until recently. These new features will help us look at borrowers in a completely different light and make underwriting in this space more meaningful," he added.

In India's micro, small, and medium-sized enterprises (MSME) landscape, where approximately 6.3 crore MSMEs contribute significantly to the GDP and employment, FinAGG aims to address the pressing issue of limited credit access for these enterprises. The supply chain finance gap in India is estimated at Rs 60,000 crores, with FinAGG having disbursed over Rs 5230 crores to over 85,000 MSMEs in over 100 tier 1 and 2 cities to date. Notably, around 20 per cent of these enterprises are led by women entrepreneurs, fostering annual sales growth of 22 per cent and promoting financial awareness and inclusion. 

Srini Ramki, co-founder and CTO of FinAGG Technologies said, "The funds secured in this round are pivotal for our future endeavors. They will play a crucial role in expanding our reach across India, aligning seamlessly with our ambitious goal of positively impacting over 250,000 lives by March 2025. This financial infusion propels our expansion and solidifies our commitment to making a meaningful difference in the MSME financing landscape, amplifying the tangible outcomes of our collective efforts."

FinAGG's Quick Cash Flow platform, having completed the RBI Sandbox for MSME Lending in November 2023, also leverages technology to offer low-cost loans seamlessly. 

Rajiv Sabharwal, the managing director and chief executive officer of Tata Capital, said, "Our existing partnership with FinAgg in the SME supply chain has been successful, showcasing promising traction. We value FinAgg's tech-driven efficiency and focus on distributor finance access. Excited about our continued collaboration, we anticipate a fruitful partnership and are committed to supporting FinAgg's next growth phase. Together, we aim to drive innovation and excellence in the evolving financial services landscape."

Mahesh Joshi, Head of Private Equity Investments- Asia at BlueOrchard, said, "Rapidly becoming a premier partner to blue-chip companies in FMCG, consumer electronics, and building materials, FinAGG gains access to millions of Indian MSMEs. Our collaboration with FinAGG is aimed at enhancing financial service accessibility, propelling growth, and fortifying the resilience of the vulnerable MSME sector in India. Together, we aspire to make substantial contributions to the economic empowerment and sustainability of MSMEs across the nation."

Founded in 2019, FinAGG uses OCEN and GST Sahay for supply chain financing and is among the few completing both RBI and IFSCA sandboxes. Integrated with India Stack's Aadhar, GSTN, UPI, NACH, etc., the platform ensures lenders access quick and seamless growth capital. 

Its underwriting engine maintains NPA levels well below industry benchmarks. Since 2020, they've onboarded major consumer brands, collaborating with over 25 recognized names, including leading banks, NBFCs, and entities supporting MSME development in India.