The Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partner also participated in the equity-based round.
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The company, a loan agent partner of the Open Credit Enablement Network (OCEN), has also raised another million dollars by buying out the shares of early employees at the firm, founder and CEO Nipun Kohli told ET.
The company, which currently employs 150 staffers, has earlier raised external capital in two rounds of seed funding in 2020 and 2022 from investors such as BLinC Invest and Prime Venture Partners.
“Rapidly becoming a premier partner to blue-chip companies in FMCG, consumer electronics, and building materials, FinAGG gains access to millions of Indian MSMEs… Together, we aspire to make substantial contributions to the economic empowerment and sustainability of MSMEs across the nation,” Mahesh Joshi, head of private equity investments, BlueOrchard Asia, said.
FinAGG provides credit access as well as underwrites these loans, away from its own balance sheet. It partners with lenders such as Tata Capital, SIDBI, Aditya Birla Finance and HDFC Bank to provide credit to enterprises it accesses through fast-moving consumer goods distributors such as ITC.
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Founded in 2019, FinAGG uses both OCEN and GST Sahay for its supply-chain financing business and also has some of its products being built out of sandboxes of the Reserve Bank of India and International Financial Services Centres Authority.Kohli told ET that the business is currently spread across MSMEs in 45 cities, which the company aims to expand to 150 over the next six months. Currently, it generates 70% of its total revenues from services to banks, and the rest from technology enablement for these banks.
“Our existing partnership with FinAgg in the SME supply chain has been successful, showcasing promising traction. We value FinAgg’s tech-driven efficiency and focus on distributor finance access,” Rajiv Sabharwal, managing director and CEO, Tata Capital, said.
