Lok Capital and Matrix Partners India Lead $8.5M Investment in Seeds Fincap
New Delhi: Seeds Fincap Pvt. Ltd., a Non-Banking Financial Company (NBFC) based in Gurugram, has raised over $8.5 million in a Series A funding round led by Lok Capital and Matrix Partners India (aka Z47). This significant investment will enable Seeds Fincap to expand its lending capabilities, enhance its technological infrastructure, and broaden its branch network.
Addressing the MSME Credit Deficit
India’s micro, small, and medium enterprises (MSME) sector faces a significant credit deficit of over ₹8 trillion. These businesses, spanning manufacturing, trading, and allied services, are often under-served by traditional financial institutions. Seeds Fincap aims to address this gap by offering specialized credit products tailored to the needs of MSMEs. The company provides secured and unsecured loans ranging from ₹1-5 lakhs, leveraging a rigorous credit assessment process and technology to manage risk and reduce operational costs.
Rapid Growth and Impact
Since its establishment in 2021 by Subhash Acharya and Avishek Sarkar, Seeds Fincap has rapidly expanded its reach. The company now operates 90 branches across eight states, with a strong presence in Uttar Pradesh, Bihar, Rajasthan, and Haryana. In three years, Seeds Fincap has disbursed over ₹600 crore in loans, serving more than 50,000 customers and growing its loan book to over ₹330 crore. The NBFC has diversified its liability base with over 35 lending partners, including AU Small Finance Bank, Tata Capital, IDFC Bank, Yes Bank, and Vivriti Capital.
Founders’ Insights
Subhash Acharya, Managing Director and Co-founder of Seeds Fincap, highlighted the under-served nature of MSMEs in India. He stated, “MSMEs in India continue to be under-served on credit, often overlooked by incumbent financial institutions. At Seeds Fincap, we’ve developed a unique credit evaluation framework supported by a tech-enabled sourcing-to-collections process designed to empower enterprises with tailored financial solutions. Our partnership with investors, Matrix Partners India and Lok Capital, signifies a shared dedication to unlocking the immense potential within the MSME segment. This funding will not only fuel our expansion efforts but, more importantly, empower the dreams of our clients—the gritty entrepreneurs propelling India’s economic engine forward.”
Avishek Sarkar, Co-founder of Seeds Fincap, added, “Our clients range from traders, small kirana shops, owners of micro-manufacturing units, and allied service providers, all of whom play a vital role in India’s growth story. Most of them have working capital requirements and often struggle to access right-priced and timely credit. At Seeds Fincap, we provide a variety of credit products to meet these needs. Over the last three years, we have developed expertise in assessing their cash flows and underwriting these businesses.”
Investor Perspective
Vikram Vaidyanathan, Managing Director of Matrix Partners India, expressed confidence in the potential of MSME credit in India, remarking on the massive opportunity as India scales towards becoming a $10 trillion economy. Rajat Bansal, Director at Lok Capital, also emphasized their commitment to supporting Seeds Fincap’s mission and growth prospects.
Seeds Fincap intends to scale its lending book, diversify into newer products, and invest in expanding its branch network, further penetrating the MSME market and providing essential financial services to small businesses across India.
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