Fundfina Technologies Pvt Ltd, which operates financial platform Fundfina, on Friday said it has scooped up seed funding of $1.3 million (around Rs 10 crore) from LetsVenture AIF Syndicate led by Pratekk Agarwaal (former Chief Business Officer at BharatPe).
The round also saw participation from Telama Investment, NAFA Capital, Hem Angels, among others.
The company plans to use the fresh capital for scaling up the marketplace participants and throughput of the key products of patent-pending financial inclusion indices and unsecured working capital, while introducing new products such as business-to-business (B2B) checkout, and micro, small and medium enterprises credit cards, among others.
Founded in 2019 by Rahul Tripathy, Nishant Bhaskar, Bikram Bajaj and Abhijit Naik, Fundfina empowers small businesses to grow, manage and protect cash-flows.
It enables brands and institutions to grow and retain their distribution network over an open and trusted embedded financial marketplace.
“Democratising finance for small businesses is the raison d'être for Fundfina. Our B2B2B working capital solutions power a huge retailer base of leading payment firms, banking correspondents and kiranatech, while providing our lending partners indices-driven approach to investing in MSME credit portfolio. With the recent round of funding we will accelerate the scaling of our API first open financing platform," said Tripathy.
The platform claimed it has around 600,000 micro and small businesses across 26 Indian states with 80% being new to formal credit. Its marquee clients include ICICI, LivFin, Aphelion, IndiTrade, among others.
In 2020, the company raised $0.3 million (around Rs 2 crore) from senior executives of banks, asset management firms and technology firms, among other investors.
