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NBFC firm Techfino raises Rs 65 crore in equity round to boost MSME lending
- Techfino, a non-banking finance company, raises Rs 65 crore in equity funding led by Stellaris Venture Partners and Saison Capital.
- The Bengaluru-based lender plans to expand secured lending operations for MSEs in India's semi-urban and rural areas.
- The funding will help Techfino double its branches from 30 to 60, enhance its workforce, and improve credit risk assessment technology.
- Techfino was founded in 2019 by former banking executives and operates in education loans and MSE secured lending.
- The company's asset under management is about Rs 225 crore, with Rs 100 crore in loan against property portfolio.
- Techfino disburses over Rs 10 crore in secured loans monthly and expects this to double post the funding.
- The average LAP ticket size ranges from Rs 8 lakh to Rs 12 lakh, catering to small retailers and farmers across various states.
- Techfino evaluates household-level income for underwriting, considering earnings of multiple family members.
- The company attributes its scalability to tech infrastructure integrating banking data, property verification, and legal checks.
- Techfino has disbursed over one lakh loans, closed FY25 with Rs 34 crore revenue, and Rs 1.5 crore profit before tax.
- The firm employs about 400 staff, aiming to increase to 600 by year-end, focusing more on its MSME LAP portfolio for growth.
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