Jaipur-based non-banking finance company (NBFC) Namdev Finvest has secured $15 million in its Series B funding round, led by British International Investment (BII), LC Nueva AIF (LC), and existing investor Incofin India Progress Fund, signaling a pivotal move towards expanding its green financing initiatives, including electric mobility and solar loans.
To bolster its presence in the green financing sector, Namdev Finvest plans to allocate the proceeds towards expanding its reach, enhancing product diversification, and implementing technological advancements. This funding round marks a significant milestone for the NBFC, bringing its total funding to approximately $22 million.
“We intend to use the money that we have raised mainly to fuel our lending operations, support geographical expansion and invest in technology,” said chief executive officer Jitendra Tanwar.
Expanding Operations and Diversifying Portfolio
Namdev Finvest, headquartered in Jaipur, has predominantly operated in Rajasthan, contributing to 80 percent of its business operations. However, with the latest funding injection, the NBFC is set to expand its footprint in Gujarat, Madhya Pradesh, Delhi, and Uttar Pradesh. The company aims to establish branches in these regions, increasing its current branch count from 110 to 150 by FY25.
Following the funding round, Namdev Finvest is committed to green financing by venturing into electric mobility and solar loans. “We are focused on tier-three and –four locations and serve customers not catered to by traditional banking channels. Hence, we also have a strong branch-led business model,” Tanwar said.
The NBFC plans to fund electric three-wheelers and extend credit to companies building infrastructure within the electric mobility ecosystem. Additionally, it will offer solar loans for both commercial and residential purposes.
Financial Impact and Growth Targets
Namdev Finvest, founded in 2013 by Jitendra Tanwar, has diversified its funding sources through collaborations with over 40 lenders, including public, private, and small finance banks, international financial institutions, and domestic financial institutions.
The company claims to have positively impacted more than 50,000 lives and aims to touch over 100,000 lives by FY25.
With an asset under management (AUM) of INR 1,000 crore ($125 million), 85 percent of which is in the MSME business and the remaining in green financing, Namdev Finvest envisions doubling its AUM to INR 2,500 crore by FY25.
The company reported a revenue of INR 121.69 crore in FY23, showcasing robust growth compared to INR 74.91 crore in FY22. The profit also increased to Rs 11.99 crore in FY23 from Rs 10.87 crore in the previous fiscal year.
This Series B funding round follows Namdev Finvest’s successful fundraising of $4.7 million in September 2021 and $7.5 million in October 2022. The consistent financial support underscores investor confidence in the NBFC’s business model and its potential for sustainable growth.
Namdev Finvest’s successful funding round positions the NBFC as a key player in the evolving landscape of green financing.
“Through this commitment, we are able not only to help improve access to credit for more underserved MSMEs in Tier II and Tier III cities but also promote sustainable economic growth through Namdev’s new green loan product for EV and solar products,” said Srini Nagarajan, managing director and head of Asia at British International Investment.
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