SarvaGram Fincare’s FY25 income grows 74% to Rs 274 crore, net profit slips amid rising credit costs

Sarvagram-fintech

Rural fintech lender SarvaGram Fincare Private Limited (SFPL) reported a 74% jump in total income to Rs 274 crore in FY25, up from Rs 158 crore in the previous fiscal, as it continued to scale its rural lending operations, as per rating agency ICRA’s report.

However, the company’s standalone net profit dropped to Rs 4.89 crore in FY25 from Rs 7.56 crore in FY24, reflecting higher employee costs and credit provisioning, the report dated July 28 said.

SFPL is a subsidiary of SarvaGram Solutions Private Limited (SSPL), which offers a range of non-lending services such as farm mechanisation, insurance distribution, and digital financial solutions via its franchise network of Sarvamitras.

On a consolidated basis, SarvaGram Solutions posted a net loss of Rs 61 crore in FY25, widening from Rs 20 crore in FY24, even as consolidated income rose to Rs 309 crore from Rs 181 crore.

The group's total managed assets stood at Rs 2,136 crore in FY25, up 60% year-on-year, signalling strong expansion in its rural footprint.

Founded by Sameer Mishra and Ishan Isser in 2018, SarvaGram targets the largely untapped segment of aspirational semi-urban and rural households—classified as “underbanked but creditworthy.” Its core differentiator lies in a household-centric lending model that assesses the financial capacity of the entire household rather than just the individual borrower.

The company segments its customers into three broad categories, salaried individuals, farmers, and micro, small and medium enterprises (MSMEs), and offers a diversified credit portfolio, including gold, housing, personal, farm, and consumer durable loans.

These households typically include salaried earners, landowners, dairy farmers, and entrepreneurs engaged in small-scale manufacturing, trading, or retail services such as kirana stores, pharmacies, electrical shops, C&F agencies, and even clinics or handicraft units.

In November 2024, teh NBFC raised Rs 565 crore (around $68.07 million) in a Series D equity funding round led by Peak XV Partners.

Existing shareholders Elevar Equity, Elevation Capital, Temasek, and TVS Capital also participated in the round.

Moneycontrol was the first to report that the fintech was in talks to raise at least $50 million in equity from existing investors at a valuation of $170-200 million, almost double since its last fundraise in January 2023.

The round took SarvaGram’s total capital raised to Rs 950 crore.

FY24 numbers

SarvaGram turned profitable in FY24, reporting profit after tax of Rs 7.6 crore.

The group entity SarvaGram Solutions Private Ltd (SSPL) continues to operate at a loss. SSPL narrowed net loss to Rs 11.6 crore in FY24, 65 percent lower than the previous year, with total assets under management (AUM) growing 1.5 times to Rs 1,166 crore.