Prayaan Capital Secures Rs 110 Crore in Series A Funding Round Led by Peak XV
Prayaan Capital Raises Rs 110 Crore in Series A Funding Round
Prayaan Capital, a Chennai-based MSME lender, has secured Rs 110 crore in a Series A funding round led by Peak XV Partners. This investment aims to support the company's growth plans, including the development of a technology-led lending platform and expansion of credit access to underserved small businesses in India.
Led by Rangarajan Krishnan, former joint managing director and CEO of Five-Star Business Finance, Prayaan Capital plans to utilize the capital to build its lending platform, expand its team, and increase its presence across key MSME markets. Krishnan recently acquired a controlling stake in the company and aims to position it as a technology-enabled lender combining on-ground underwriting with digital tools across sourcing, underwriting, and collections.
The funding comes at a critical juncture, with an estimated $300 billion credit gap faced by MSMEs in India. This gap presents opportunities for fintech lenders focused on digital underwriting and distribution. Peak XV Partners' investment is a testament to the company's commitment to expanding access to credit for small businesses.
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Key Highlights
- Rs 110 crore Series A funding round led by Peak XV Partners
- Expansion of credit access to underserved small businesses in India
- Development of a technology-led lending platform
- Increased presence across key MSME markets
- Estimated $300 billion credit gap faced by MSMEs in India
Investor Takeaway
Investors should consider Prayaan Capital's growth prospects as it expands its technology-led lending platform.
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