Rural fintech startup Navadhan has raised ₹111 crore in a Series A funding round, surpassing its target of ₹80 crore. The round was led by NabVentures, with Prime Venture Partners as co-lead, along with other investors like LNB Group, Varanium NexGen, and Gemba Capital. Navadhan, founded by Nitin Agrawal and his team, provides working capital financing for rural MSMEs through its AceN tech platform.
The new funds will help expand its business and improve its technology. Navadhan already has ₹700 crore in debt lines from 25+ banks and NBFCs. It aims to support rural entrepreneurs with better financial solutions.
What is Navadhan?
Navadhan is a rural fintech startup that provides financial solutions to small businesses (MSMEs) in rural and semi-urban areas of India. It operates through its AceN tech platform, which facilitates working capital financing by connecting NBFCs and banks with rural entrepreneurs.
Navadhan holds an NBFC license from the Reserve Bank of India (RBI) and has secured ₹111 crore in Series A funding, led by NabVentures and Prime Venture Partners. The company currently serves over 700 PIN codes across five states—Madhya Pradesh, Rajasthan, Gujarat, Karnataka, and Odisha—helping rural businesses grow through efficient, technology-driven lending solutions.
Why is This Funding Significant?
The ₹111 crore Series A funding for Navadhan is significant as it exceeded the initial target of ₹80 crore, reflecting strong investor confidence. This investment will help the company scale its operations and enhance its AceN tech platform, which connects rural MSMEs with banks and NBFCs for seamless financing.
The funding round was led by NabVentures, the venture capital arm of NABARD, along with Prime Venture Partners and other key investors, strengthening Navadhan’s credibility. With a strong focus on rural entrepreneurship, the funds will enable better financial access for MSMEs, boosting employment and economic growth in rural India.
How Will the Funds Be Used?
The ₹111 crore Series A funding will be used to expand Navadhan’s business operations and enhance its AceN tech platform. The company aims to improve its digital infrastructure, making financing more seamless for rural MSMEs. A significant portion of the funds will go toward scaling its lending network, onboarding more banks and NBFCs, and increasing its presence in rural and semi-urban markets.
Additionally, Navadhan plans to develop advanced data-driven underwriting models to assess creditworthiness in cash-based rural economies. The investment will also support geographic expansion beyond the 700 PIN codes across five states where Navadhan currently operates.
Founders’ Perspective
Navadhan’s founders see this funding as a crucial milestone in their mission to empower rural entrepreneurs.
Co-founders Amit Biswal, Vijay Haswani, and Anirudh Ramakuru also emphasize Navadhan’s commitment to bridging the credit gap for small businesses. They highlight how the AceN tech platform leverages data science to overcome challenges in traditional rural lending. The team believes this funding will help them expand operations, strengthen partnerships with banks and NBFCs, and scale financial inclusion in rural India.
Key Takeaways
- Successful Fundraising: Navadhan raised ₹111 crore in Series A funding, surpassing its target of ₹80 crore, showing strong investor confidence.
- Leading Investors: The round was led by NabVentures (NABARD’s VC arm) and Prime Venture Partners, along with LNB Group, Varanium NexGen, Gemba Capital, and others.
- Expansion Plans: The funds will be used to scale operations, enhance the AceN tech platform, and expand lending to rural MSMEs.
- Tech-Driven Growth: Navadhan’s AceN platform integrates API-based lending, making financial services more accessible to rural businesses.
- Founder’s Vision: CEO Nitin Agrawal emphasized their mission to create “new wealth (Nava-dhan) for rural-preneurs”, leveraging technology and partnerships.
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Conclusion
Navadhan’s successful ₹111 crore Series A funding marks a major step in its mission to empower rural MSMEs through tech-driven financial solutions. With strong investor backing, including NabVentures and Prime Venture Partners, the company is set to expand its operations, enhance its AceN tech platform, and deepen its presence across rural India.
By leveraging API-based lending and data-driven underwriting, Navadhan aims to bridge the credit gap for small businesses. As it grows beyond 700+ PIN codes, the startup is well-positioned to drive financial inclusion, job creation, and sustainable economic development, shaping the future of rural fintech in India.
Stay Ahead in Fintech! – Follow Navadhan’s journey as it revolutionizes rural lending with its AceN tech platform.
