SUMMARY
- SarvaGram is in talks with Peak XV, Apis Partners & others to raise $50 million in funding.
- It aims to expand in rural India with a unique franchise model.
- Its NBFC arm achieved profit growth and reduced losses in FY24.
Mumbai-based SarvaGram, which is a lending company that focuses on rural households, is in advanced talks to raise $50 million from both old and new investors. The firm is anticipated to be valued up to nearly $200 million, which is as double the money raised by them in January 2023.
The top contenders for the $50 million round, which is anticipated to comprise a combination of primary and secondary deals, include venture capitalists Peak XV, Apis Partners, and Beams Fintech Fund.
It distributes both credit and non-credit products through an on-ground franchise concept. The company trains its franchise owners, or Sarvamitras, who are locals, to make loans accessible through SarvaGram Fincare Private Limited (SFPL), its non-banking financing arm (NBFC), and partner lenders. Moreover, it offers insurance and farm mechanization options to its rural clientele.
With 125 locations in Gujarat, Maharashtra, Karnataka, and Rajasthan, the company intends to grow over the current fiscal year by entering new markets and strengthening its present ones.
Utpal Isser and Sameer Mishra led SarvaGram was founded in the year 2018, which focuses on an underserved but expanding market of semi-urban and rural households that fall under the category of “underbanked but creditworthy”. They also provide a variety of loans including gold, housing, personal, farm, and consumer durable loans, the platform divides its clientele into three categories: salaried, farm, and micro, small, and medium enterprises.
The NBFC generated a profit in FY24 posting a Rs 7.6 crore profit. In FY24 In FY24, SSPL reduced its net loss to Rs 11.6 crore, a 65 percent decrease from the year before, while total assets under management (AUM) increased 1.5 times to Rs 1,166 crore.
Apart from its NBFC division, in which Sarvagram owns a 79.6% share, the company offers non-lending financial services in the regions that Sarvamitras serves, including farm mechanization solutions and insurance distribution.
