MC Exclusive: InCred CFO Vivek Bansal quits to launch fintech startup, Kotak President Sunil Daga set to join

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Vivek Bansal, Group CFO at fintech unicorn InCred, and Sunil Daga, President at Kotak Mahindra Bank, are preparing to launch their own MSME-focused NBFC venture, Saarathi Finance, according to sources and an investor deck reviewed by Moneycontrol.

Both executives are currently serving their notice periods at their respective firms and are actively engaging with investors to secure funding for the new venture.

Saarathi Finance, a Mumbai-based entity registered in August, has applied for an NBFC (non-banking financial company) license with the Reserve Bank of India (RBI). The company is in discussions with private equity investors to raise Rs 600 crore in equity, with a projected valuation of approximately Rs 1,000 crore. Sources indicate that both Bansal and Daga are expected to contribute a portion of the capital themselves.

"Discussions are ongoing," sources added.

The venture comes at a time when there is increasing investor interest in fintech NBFCs, particularly those addressing the credit needs of under-served MSMEs (micro, small and medium enterprises). Fintech NBFCs use advanced technology to offer financial services, and the sector has seen steady growth as the regulatory clarity around digital lending and NBFC operations improves.

Moneycontrol recently reported on large cheques returning to NBFC-backed digital lending platforms, with firms like Mintifi, Sarvagram, and Flexiloan in discussions to raise funding.

The MSME credit gap is estimated at Rs 92 trillion as of fiscal 2023, with less than 10% of the 70 million MSMEs having access to formal credit, according to a Crisil report. This leaves a huge growth opportunity for financial institutions, with NBFCs continuing to gain market share in the small business loan segment from traditional banks.

A closer look at Saarathi Finance

Saarathi Finance plans to focus on providing secured loans to MSMEs, with ticket sizes ranging from Rs 5-20 lakhs, and unsecured personal loans for salaried individuals, ranging between Rs 1-5 lakhs, according to the investor deck reviewed by Moneycontrol.

Secured lending will come from Saarathi’s in-house NBFC, while personal loans will be delivered via partnerships with other financial institutions and fintechs in a co-lending model. The company plans to target urban and semi-urban customers through a digital-first B2B2C super app, positioning itself alongside established players like Aditya Birla Finance, Bajaj Finserv, and new-age firms like Indifi, UGro, Lendingkart, Flexiloan and InCred.

Saarathi is also scouting for leadership talent and has already initiated talks with executives from top banks and NBFCs, sources revealed.

Queries sent to Daga and Bansal remained unanswered at the time of publication. The story will be updated when their responses are received.

The founding duo

Bansal and Daga’s leadership brings a combined wealth of experience in banking and SME lending, a key factor as they enter the competitive fintech lending space. Bansal, before joining InCred, served as Deputy CFO at Yes Bank, where he was responsible for financial management, capital raising, and investor relations. His two decades of experience span roles at Fidelity Investments, Standard Chartered, and Yes Bank.

InCred confirmed that Bansal is stepping down to pursue entrepreneurial ambitions.

"I am deeply thankful to Vivek for his invaluable support in expanding and diversifying our liabilities base, leading the charge in securing our rating upgrade and establishing a robust governance and regulatory framework. I wish him all the best in his future endeavours and thank him for his unwavering commitment to InCred,” Bhupinder Singh, Founder & Group CEO of InCred said.

Bansal is not the first InCred alum to launch a venture. Successful startups like GlobalBees, Leap Finance, and Kuhoo have been founded by former InCred employees.

On the other hand, Sunil Daga, who has been with Kotak Mahindra Bank for over 20 years, has played a pivotal role in building the bank’s working capital division, particularly for MSMEs. He oversaw key product categories like business loans, small-ticket secured loans, supply chain financing, and working capital solutions.

Daga, a member of Kotak’s leadership team for the past four years, has also been associated with trade forums like the CII MSME National Chapter and the MP Udyog Chamber of Commerce.

He is likely to join in the capacity of an executive director at the new venture, the pitch deck reveals.

The future of MSME lending

With small business loans expected to grow at a 15 percent compound annual growth rate (CAGR) between fiscal 2023 and 2026, driven by both Loan Against Property (LAP) and non-LAP segments, the sector is poised for significant expansion, per Crisil report.

Increasing credit penetration, enhanced use of technology, and the entry of new players—coupled with government support—are contributing factors.

Less than 10 percent of MSMEs currently have access to formal credit, leaving a vast untapped market for financial institutions. NBFCs are continuing to gain market share from banks in this segment, and ventures like Saarathi Finance are looking to capitalize on this opportunity.