Namdev Finvest raises $37m to scale MSME lending

By Vriti Gothi

India-based non-banking financial company (NBFC) Namdev Finvest has raised $37 million (around INR 324 crore) through a mix of listed non-convertible debentures (NCDs) and external commercial borrowing (ECB), as it looks to expand credit access for underserved micro, small and medium enterprises (MSMEs) across India.

The funding round brings together a group of development finance institutions and global asset managers, including FMO, the Dutch Entrepreneurial Development Bank; Impact Investment Exchange (IIX); Franklin Templeton Alternative Investments Fund India; and impact-focused debt investor Symbiotics.

The capital will be deployed to deepen Namdev’s MSME lending operations in rural and semi-urban markets, with a focus on Tier III and smaller cities. The company said the funds will support lending to women-led enterprises, youth-driven businesses and first-time borrowers who remain outside the formal credit system.

Founded in 2013 by first-generation entrepreneur Jitendra Tanwar, Namdev Finvest is a systemically important, non-deposit-taking NBFC. It operates across nine states and has built a secured lending model aimed at balancing portfolio growth with risk management and governance. The company has previously attracted equity backing from British International Investment, Incofin and Maj Invest, and completed a $3 million top-up round in March 2025 from existing investors and the promoter group.

A significant portion of the latest raise comes from development-focused capital. FMO invested $20 million, while IIX contributed $8 million through its Women’s Livelihood Bond™ 7, underscoring the growing role of gender-lens and impact-linked instruments in India’s debt markets. Symbiotics added $6.5 million, extending a partnership that began in 2022, and Franklin Templeton AIF invested $2.3 million.

Symbiotics’ Regional Head for South Asia, Prashant Bhardwaj, highlighted the lender’s execution track record and alignment with sustainability goals, noting its potential to emerge as a leading impact-oriented NBFC as climate-aligned and green finance gain traction in India.

The transaction reflects a broader trend in India’s financial sector, where development finance institutions and impact investors are increasingly using debt instruments to channel capital into regulated lenders serving last-mile borrowers. For NBFCs such as Namdev, diversified foreign and domestic debt provides balance-sheet stability while supporting the policy push toward inclusive and sustainable economic growth.