Peak XV leads SarvaGram's nearly $70 mn Series D round

By Roshan Abraham

  • 14 Nov 2024
Utpal Isser, co-founder, MD & CEO, SarvaGram

Rural lender SarvaGram Solutions Thursday said it has raised Rs 565 crore nearly ($67 million) in a Series D funding round, led by Peak XV Partners and some other investors, as it aims to tap rural Indian households.  

Avendus acted as the financial advisor in the transaction.

With the latest equity investment, the Pune-based SarvaGram Solutions Pvt Ltd has raised Rs 950 crore so far. Existing investors Elevar Equity, Elevation Capital, Temasek and TVS Capital also took part in the funding. 

The company had previously raised around $46 million from Elevar Equity, Elevation Capital, Temasek and TVS Capital.   

SarvaGram is eyeing over 96 million rural households to extend its loan offerings, aiming to service three key household segments: farm, salaried and MSE households.  

The company also provides insurance products and farm mechanization services through its on-ground workforce and local franchise partners. 

"We wanted to invest in companies that cater to the rural markets with sustainable and relevant products, which SarvaGram offers," said Anuradha Ramachandran, managing partner at TVS Capital. 

SarvaGram has assets under management (AUM) of about Rs 1,200 crore, of which 70% of the loans are secured by property. It claims to serve over 1 lakh customers across five states through 150 branches. 

The PE-backed firm recorded strong growth, with consolidated revenue likely reaching around Rs 150 crore in FY24, while meeting breakeven in the period, VCCircle reported in May. Within the first half of FY24, the company posted a net profit of Rs 1.3 crore on total AUM of Rs 666 crore. 

The company was founded in 2019 by banking veterans Utpal Isser and Sameer Mishra.