InCred’s Vivek Bansal, ex-Kotak executive Sunil Daga raise Rs 475 crore Series A for new NBFC venture

Vivek Bansal, Founder and CEO, Saarathi Finance

Saarathi Finance, a newly licensed NBFC co-founded by former InCred Group CFO Vivek Bansal and former Kotak Mahindra Bank president Sunil Daga, has raised Rs 475 crore in its maiden Series A equity round from TVS Capital Funds, Lok Capital, Evolvence India, Paragon Partners and a clutch of angel investors.

The capital will be used to offer loans to micro and nano entrepreneurs across semi-urban and rural regions in  Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh, the company said on May 28.

“We are committed to empowering Bharat’s entrepreneurs by providing more than just credit — a partnership that values and supports their growth,” Saarathi Finance founder and CEO Vivek Bansal said. “This funding milestone enables us to accelerate our mission, ensuring every stakeholder, from entrepreneurs to investors, is valued and cared for in our journey.”

Moneycontrol was the first to write in September 2024 that Bansal and Daga while serving their notice periods at InCred and Kotak, were preparing to launch the NBFC focused on MSME lending.

At the time, the duo had begun discussions to raise Rs 600 crore in equity at a projected valuation of Rs 1,000 crore. The company, registered as Saarathi Finance, has now officially launched with this fundraise and is valued at more than Rs 900 crore.

Of the Rs 475 crore raised, around Rs 350 crore came from institutional and angel investors, while the founders contributed the remaining capital.

Targeting the underserved

The firm plans to offer secured loans ranging from Rs 5–20 lakh to MSMEs, the investor deck seen by Moneycontrol said. It will also provide unsecured personal loans of Rs 1–5 lakh through co-lending tie-ups.

“Saarathi Finance embodies the spirit of inclusive growth that aligns with our vision of supporting micro and nano businesses crucial to India’s journey towards a $10 trillion economy,” TVS Capital chairman and MD Gopal Srinivasan said.

Rajat Bansal of Lok Capital called Saarathi “the next generation of market leaders” in secured micro-enterprise lending.

Abhishek Chandra from Evolvence said the firm is poised to build a “high-quality, enduring lending franchise”, while Paragon Partners’ Siddharth Parekh pointed to the leadership team’s “proven experience and execution depth” as key to its long-term success.

Also read: IKF Finance closes Rs 1,465 crore funding from Norwest, Motilal Oswal Alternates

Before launching Saarathi, Bansal led InCred’s finance operations and served as deputy CFO at Yes Bank, with earlier stints at Fidelity and Standard Chartered.

Daga, a Kotak veteran of more than 20 years, led the bank’s MSME-focused secured lending products and has held leadership roles in trade forums such as the CII MSME National Chapter.

India’s MSME lending market is expected to grow at a 15 percent CAGR through FY26, driven by products like Loan Against Property (LAP) and backed by growing investor interest in fintech NBFCs.

Players such as Flexiloan, Sarvagram, Finova Capital and IKF Finance have raised large rounds to fuel the growth and tap the unserved segment.