Founded in 2019 by senior financial services and banking executives, the Mumbai-based company had previously raised around $2.8 million over two seed rounds.
Navadhan, which is a RBI registered non-banking finance company, also runs a technology platform – AceN – which offers a full stack, from sourcing to digital onboarding of customers. It also offers underwriting, payments and collections.
The newly raised funds will be used to further strengthen the AceN platform and scale up the company’s distribution business, the company said on Tuesday.
“The new fundraise will add tailwinds to our efforts at building solutions to bring such small businesses to the formal economy. We will continue to build it for banks, NBFCs to leverage on the regulatory advantage of priority sector assets,” said Nitin Agrawal, founder, Navadhan.
Navadhan has over Rs 300 crore of credit lines available from 20 banks and NBFCs.
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Navadhan targets customers who are mostly not served by banks because of a lack of banking data on them. The fintech uses an underwriting model which assesses the customers’ financial situation from their digital footprint and other cash flow surrogates. Besides the digital platform, Navadhan also has a physical presence on the ground for customer service.
“Nitin, his co-founders, and the Navadhan team have demonstrated an extremely viable and tech-driven model for distribution, underwriting, and robust collections, while leveraging co-lending to achieve meaningful scale,” said Sanjay Swamy, managing partner, Prime Venture Partners.
