Optimo Capital raises $30m to boost AI lending expansion

By Vriti Gothi

Optimo Capital, a non-banking financial company (NBFC) specialising in loans against property (LAP), has raised $17.5 million in a new funding round led by its founder, Prashant Pitti, with participation from existing investors Blume Ventures and Omnivore. Alongside the equity infusion, the company secured nearly $12.5 million in debt from IDFC Bank and Axis Bank, bringing its total equity capital raised to $27.5 million.

The latest investment marks a significant milestone in Optimo Capital’s mission to expand access to affordable, collateral-backed credit for small and medium business owners in India’s tier-2 and tier-3 cities. By offering property-secured loans at more competitive rates than unsecured products, the company is deepening financial inclusion across entrepreneurial communities beyond the metropolitan centres.

At present, Optimo Capital operates across 56 cities in Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and Madhya Pradesh, with assets under management (AUM) standing at $42 million. The company is targeting $84 million in AUM by the end of FY26, signalling its steady momentum in India’s fast-growing secured lending market.

A portion of the newly raised capital will be channelled towards strengthening Optimo Capital’s technology infrastructure, with a particular focus on enhancing its artificial intelligence (AI) and data capabilities. The company currently uses 7.7 million digital land records integrated with AI to accelerate the loan assessment and disbursal process. This focus on intelligent automation reflects the company’s commitment to combining data-driven decision-making with customer-centric engagement to deliver faster, more transparent, and reliable financial services.

India’s commercial credit portfolio has grown at a compound annual growth rate (CAGR) of 13% over the past five years to reach $422 billion as of March 2024, according to the Small Industries Development Bank of India’s MSME Pulse report. While public and private sector banks account for the majority of this portfolio, NBFCs, which hold 11% have emerged as the fastest-growing segment, expanding at a CAGR of 19%. In this evolving market, Optimo Capital is carving a distinct position by combining AI-powered loan origination with an on-ground presence that builds trust and accessibility. Other players in the LAP segment include InCred, Kishht, Money View and Electronica Finance Ltd., but Optimo’s technology-first approach and focus on underserved regions set it apart as a catalyst for inclusive lending growth.