Fintech startup GrowXCD Finance has secured INR 50 Cr ($6 Mn) in its Series A funding round led by Lok Capital.
The startup will use the fresh capital for team building, tech innovation and expanding its footprint over the next 12-18 months, Entrackr reported.
Founded in 2022 by Arjun Muralidharan and Sathishkumar Vijayan, Chennai-based GrowXCD aims to develop credit infrastructure for the MSMEs and low-income households by enabling institutional capital to seamlessly flow into retail assets secured by mortgages.
The startup claims to have received a non-banking financial company (NBFC) licence from the Reserve Bank of India and operates out of six branches in Tamil Nadu. It currently offers two products – GrowShubam and GrowVyapaar focused on households and MSMEs, respectively.
GrowXCD aims to leverage technology in unexplored ways to improve financial access across people in Tier-I, II cities.
Founded in 2004 by Donald Peck, Rajiv B. Lall, Venky Natarajan, and Vishal Mehta, Lok Capital is an impact investor. It counts startups like Affordplan, Equitas, Mintify, and RenewBuy among its portfolio.
The development comes at a time when the Indian fintech sector has been seeing a lot of funding activities owing to the large opportunity it presents. According to Inc42’s State Of Indian Fintech Report, Q3 2023, the Indian fintech market is expected to reach a size of about $2.1 Tn by 2030, growing at an 18% CAGR.
Recently, fintech startup Kiwi secured $13 Mn (INR 108 Cr) in its Series A funding round led by Omidyar Network India to scale up its ‘credit cards on UPI’ offerings across the country.
Yet another fintech startup Slice secured INR 75 Cr (around $9 Mn) debt funding from Stride Ventures earlier this month to integrate advanced technology solutions with initiatives to promote financial inclusion at the grassroots level.
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