Fintech trailblazer FinAGG Technologies has successfully raised $11 million (INR 91.4 Crore) in its Series A funding round, co-led by BlueOrchard and Tata Capital Limited. The funding round also garnered support from the Small Industries Development Bank of India and existing investor Prime Venture Partners. The fresh capital injection is earmarked for expanding both offline and online presence, enhancing global outreach, and driving product innovation.
Founded in 2020 by Nipun Kohli and R. Srinivasan, FinAGG specializes in providing credit solutions to distributors, retailers, and micro, small, and medium-sized enterprises (MSMEs) within a brand’s supply chain. The company collaborates with large brands to onboard distributors, suppliers, and retailers, offering them convenient credit facilities.
Competing in the same space as Progcap, Mintifi, and LendingKart, FinAGG distinguishes itself by offering working capital solutions to MSMEs, utilizing India’s digital infrastructure to onboard and underwrite clients from the comfort of their homes.
Nipun Kohli, Co-founder of FinAGG Technologies, highlighted the company’s strategic focus on introducing blockchain technology to revolutionize borrower evaluation, adding depth to the underwriting process.
“The likes of BlueOrchard will help us drive the penetration of climate insurance to our clients, Tata Capital will help us scale our business operations to new heights, and SIDBI will assist us in growing GST Sahay through access to cheap funds,” said Kohli.
Srini Ramki, Co-founder and CTO of FinAGG Technologies, emphasized the critical role the secured funds will play in expanding the company’s reach across India.
According to FinAGG, the working capital industry in India has a vast potential exceeding $7.2 billion, with significant opportunities yet to be explored. Fintechs that innovate and enhance their products, making it easier for borrowers to fund their working capital, are expected to dominate the industry.
The startup reported audited revenue of INR 12.8 Crore for FY 2022-23, projecting revenues of INR 30 Crore for FY 2023-24, and anticipating substantial growth to INR 100 Crore for FY 2024-25.
As per State Of Indian Fintech Report, Q3 2023, the fintech sector, despite a 48% YoY decline in funding during the second quarter of 2023, has secured over $27 billion in funding from 2014 to mid-2023. With a promising future, the fintech market is estimated to present a substantial opportunity worth $2.1 trillion.
