Beams Fintech Fund secures $22m for NextGen Finance

By Divya Shah

Beams Fintech Fund leads an equity round in MSME-focused NBFC Business Nextgen Finance, acquiring a 26% stake with backing from Baring PE India and Saison Capital.

Beams Fintech Fund, a growth-stage private equity investor focused on the financial services sector, has secured $22.76 million (INR 215 crore) equity investment in Business Nextgen Finance Private Limited (BNF). The funding round also drew participation from institutions, including Baring Private Equity India, Saison Capital, and UNLEASH, alongside other strategic backers.

Following the completion of the transaction, which has secured prior approval from the Reserve Bank of India (RBI), Beams Fintech Fund and its affiliates will collectively acquire a stake exceeding 26% of BNF’s paid-up equity share capital on a fully diluted basis. This move positions Beams as a core institutional stakeholder guiding the NBFC through its upcoming expansion phase.

The infusion of capital will be used to strengthen BNF’s balance sheet as the company scales its tech-driven, secured lending architecture. Management plans to deploy the funds to penetrate underserved MSME micro-markets deeper and expand formal credit access for small businesses nationwide.

Sagar Agarwal, Founder and Managing Partner at Beams Fintech Fund, noted that the structural credit deficit plaguing India’s grassroots enterprise segment creates a massive opening for specialised lenders. He emphasised that success in the sector hinges on blending advanced underwriting technology with disciplined credit delivery and a profound grasp of underserved client needs.

Pankaj Poddar, Promoter, Managing Director & CEO, Business Nextgen Finance, said, “The successful completion of our $22.76 million (INR 215 crore) equity raise is a significant milestone for BNF. The confidence demonstrated by marquee institutional and strategic investors reinforces our belief in the opportunity to build a differentiated and responsible MSME lending platform.”

Poddar further noted that the capital will allow BNF to accelerate operations while maintaining strict standards around corporate governance, sustainable bottom-line profitability, and long-term stakeholder value creation.

Backed by an institutional consortium boasting deep expertise across fintech, risk management, and growth capital, BNF aims to position itself as a preferred institutional credit partner for India’s expanding micro, small, and medium enterprise ecosystem.