Rural-focused lending and distribution platform SarvaGram has raised INR 565 crore (around $68.07 million) in a Series D funding round led by Peak XV Partners to revolutionize rural lending by targeting semi-urban households with its unique household-centric model, driving significant financial growth across underserved communities.
The Series D round also witnessed Elevar Equity, Elevation Capital, Temasek, and TVS Capital participation. This capital infusion aims to bolster SarvaGram’s innovative lending services for semi-urban and rural households, classified as underbanked but creditworthy.
“The fresh funds will boost our mission of putting more power in the hands of rural households by enhancing their access and ease them into a curated set of financial and productivity-enhancing solutions,” SarvaGram co-founder and CEO Utpal Isser said.
Funding to Strengthen Rural Lending Footprint
SarvaGram plans to use this new funding to broaden its credit offerings across India. This brings the company’s total funding to INR 950 crore ($113 million), solidifying its position as a leader in the rural lending sector. The Pune-based firm previously raised $35 million during its Series C funding in January 2023.
Founded in 2018 by Utpal Isser and Sameer Mishra, SarvaGram specializes in loans for various needs, including business, farm, home, and gold loans. Its unique household-centric model treats entire families as cohesive economic units rather than relying on traditional underwriting that focuses solely on individual income.
“With over 25 years of experience serving the financial needs of rural, middle-income families in India, Utpal and Sameer have developed and scaled specialized products tailored for this segment. They are building SarvaGram with a unique, household-focused approach to bridge a critical gap in financial access,” said Chinmaya Golecha, principal of Peak XV.
Innovative Solutions for Diverse Rural Needs
SarvaGram categorizes its customers into three key segments—salaried individuals, farm households, and MSMEs (micro, small, and medium enterprises). This segmentation allows the company to offer tailored loan products and value-added services such as farm mechanization and insurance.
The platform has served over 100,000 customers, managing assets worth INR 1,200 crore, with 70 percent of its portfolio secured by property as collateral. Loans are disbursed through Sarvagram Fincare and partner institutions, including IDFC First Bank and AU Small Finance Bank.
In FY24, SarvaGram reported a revenue of INR 169.8 crore, a 2.3x increase from the previous year. Despite high operational costs, its NBFC arm turned profitable, registering a profit after tax of INR 7.6 crore. Meanwhile, the group’s non-NBFC entity, SarvaGram Solutions, reduced its losses by 65 percent to INR 11.6 crore.
With 150 branches across Gujarat, Maharashtra, Karnataka, and Rajasthan, SarvaGram aims to expand into new states and strengthen its existing footprint. The platform also provides productivity-enhancing tools such as pay-per-use farm equipment and insurance solutions.
Rural India’s rapidly evolving aspirations and diverse income streams make SarvaGram’s innovative approach crucial for empowering households nationwide.
Stay ahead of the curve and follow IndiaTechDesk on Facebook, Twitter and Linkedin for in-depth news of market trends, funding updates, and regulatory changes affecting startups in India.
Read More:
- Wiom Raises $17 Million in Series A Round to Democratize Affordable Internet Access in India
- Travel Fintech Startup Scapia Bags $23 Million in its Series A
- Funding Winter Forces Indian Startups to LayOff Thousands Amid Economic Downturn
- Y-Combinator backed SaveIN Secures $8 million Over Nine Months
- Funding Winter Chills Indian Startups, Valuations Slide as Unicorns Dwindle
