FinAGG Technologies raises $11 million in Series A funding round

FinAGG Technologies It plans to deploy the latest fundraise in expanding its offline and online presence, besides product development

MSME-focused fintech FinAGG Technologies has raised $11 million in a Series A funding round led by global impact investment manager BlueOrchard and Tata Capital Limited.

Small Industries Development Bank of India (SIDBI), and existing investor Prime Venture Partners also participated.

The fintech secured additional capital from Gray Matter Capital through Non-Convertible Debentures (NCDs).

Founded in 2019, FinAGG provides working capital solutions to MSMEs. It claims to have integrated its platform with OCEN and GST Sahay to offer supply chain finance.

Further, the firm provides loan management (LMS) and loan origination systems (LOS) to banks and NBFCs, and claims to have disbursed over Rs 5230 crore worth loans to over 85,000 MSME, to date.

“Notably, around 20 percent of these enterprises are led by women entrepreneurs, fostering annual sales growth of 22 percent and promoting financial awareness and inclusion,” the company said.

It plans to deploy the latest fundraise in expanding its offline and online presence, besides product development.

“Our team is currently working on bringing blockchain to an industry which worked on conventional pen and paper underwriting until recently. These new features will help us look at borrowers under a completely different light and make underwriting in this space more meaningful,” said Nipun Kohli, Co-founder & CEO, FinAGG.

FinAGG's Quick Cash Flow platform, having completed the RBI Sandbox for MSME Lending in November 2023, leverages technology to offer low-cost loans.

Rajiv Sabharwal, Managing Director and Chief Executive Officer, Tata Capital said, “Our existing partnership with FinAgg in the SME supply chain has been successful, showcasing promising traction. We value their tech-driven efficiency and focus on distributor finance access. Together, we aim to drive innovation and excellence in the evolving landscape of financial services.”