Techfino has secured Rs 65 crore (approximately $7.5 million) in an equity funding round led by Stellaris Venture Partners and Saison Capital, the venture arm of Japan’s Credit Saison.
Co‑founders Rajesh Panda, Jayaprakash Patra, and Ratikant Satapathy, all former executives at Standard Chartered, ICICI, Bajaj Finance, and other leading banks, will deploy the fresh capital to double their branch network from 30 to 60 over the next year. The funds will also be channelled into team expansion and enhancements to their proprietary tech platform, aimed at refining credit risk assessment across India’s semi‑urban and rural MSME segments.
Techfino has demonstrated early success with its secured Loan Against Property (LAP) model, catering to kirana store owners, traders, and dairy farmers in Tier‑2 and Tier‑3 cities across Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh. With average ticket sizes of Rs 8–12 lakh, the company has already surpassed Rs 100 crore in secured AUM and disburses over Rs10 crore monthly—metrics it aims to double following the latest infusion.
The proprietary tech stack integrates automated APIs for bank statement analysis, property valuation, and legal diligence while leveraging in‑house underwriting scorecards tailored to informal borrowers. This system has enabled rapid decision‑making and has underpinned Techfino’s consistently strong asset quality.
Since its 2019 inception, the company has disbursed over 100,000 loans across its secured and education lending verticals, amassing total AUM of Rs 200–225 crore. The education loan division, operating via a B2B2C model with institutions like Manipal and Amity, remains profitable, but management has signalled a strategic pivot towards scaling the secured MSME portfolio.
Stellaris believes Techfino’s model presents a scalable, quality-driven approach to rural lending, highlighting how formalisation through UPI and GST offers fertile ground for tech-enabled credit solutions. Saison Capital reinforced its backing, citing Techfino’s role in bridging India’s MSME credit gap.
As Techfino gears up to close FY26, it plans to amplify its secured lending capacity, increase its workforce from around 400 to 600, and strengthen bank partnerships, targeting sustainable profitability alongside branch and portfolio expansion.
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