Seeds Fincap secures over $8.5m from Matrix Partners India (aka Z47) & Lok Capital

By Gloria Mathias

NBFC Seeds Fincap has raised over $8.5 million in a Series A funding round led by Matrix Partners India (aka Z47) and Lok Capital. The funds will enable Seeds Fincap to expand its lending capabilities, enhance its technological infrastructure, and broaden its branch footprint.

Seeds Fincap aims to meet the financial needs of business owners with tailored credit products. The Gurugram-based lender provides secured and unsecured loans to MSMEs with ticket sizes between ₹ 1 and 5 lakhs. The company employs a rigorous credit assessment process to evaluate cash flows and offer right-priced loans while leveraging technology to monitor risk and lower operating expenses.

Within a short span, the firm has scaled to build a network of 90 branches across 8 states, with a presence in UP, Bihar, Rajasthan, and Haryana. Seeds Fincap was established in 2021 by Subhash Acharya and Avishek Sarkar, both bringing decades of experience in the lending sector.

Subhash Acharya, Managing Director and Co-Founder of Seeds Fincap shared, “MSMEs in India continue to be underserved on credit, often overlooked by incumbent financial institutions. At Seeds Fincap, we’ve developed a unique credit evaluation framework supported by a tech-enabled sourcing-to-collections process designed to empower enterprises with tailored financial solutions. Our partnership with investors Matrix Partners India and Lok Capital signifies a shared dedication to unlocking the immense potential within the MSME segment. This funding will fuel our expansion efforts and, more importantly, empower the dreams of our clients, the gritty entrepreneurs propelling India’s economic engine forward.”

Vikram Vaidyanathan, Managing Director, Matrix Partners India (aka Z47), said, “MSME credit represents a massive opportunity in India as we scale towards becoming a $10 trillion economy, and is essential to that goal. Our thesis is to invest in high-quality businesses serving this segment with tailored “right-tech” contextual credit products, especially in underserved geographies like North and Central India. We are impressed by Subhash and Avishek’s deep experience, understanding of this customer segment, and a strong focus on credit and collections. We look forward to partnering with them and helping to build a world-class lending institution.”

In the future, Seeds Fincap intends to scale its lending book, diversify into newer products, and invest in expanding its branch network.