Saarathi Finance

What Saarathi Finance does

Saarathi Finance and Credit Private Limited is an RBI-registered non-banking financial company (NBFC) incorporated in 2024 and headquartered in Mumbai, India. It provides secured business loans (17-26% p.a.) and unsecured business loans (24-28% p.a.) to micro, nano, and small enterprises in semi-urban, rural, and Tier 3/Tier 4 towns across India, with current operations spanning 60+ branches across seven states (Andhra Pradesh, Karnataka, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and Maharashtra). Its target customer is the underserved MSME borrower excluded from mainstream bank credit by thin files or insufficient collateral, and its value proposition combines physical branch access with digital origination channels including website, WhatsApp (+91 9833880000), and phone.

The company's lending stack integrates Aadhaar-based biometric KYC via UIDAI, OTP authentication, dual credit bureau checks through CRIF High Mark and CIBIL (including NBFC and microfinance data), Account Aggregator bank-statement retrieval, and device-intelligence signals (IMEI, OS, hardware fingerprint) for fraud prevention. Supporting customer-facing tools include an EMI calculator and a free credit score check. Operations are underpinned by a senior team recruited from InCred, Yes Bank, Kotak Mahindra, AU Small Finance Bank, Equifax, Citi, and Max Life Insurance, with technology leadership from IIT Bombay/UMass. The company has also begun layering adjacent services, evidenced by a March 2026 embedded-insurance partnership with Axis Max Life Insurance and utilization of CGTMSE guarantee cover for eligible MSME exposures.

Revenue mechanics are spread-based: interest income on the loan book (secured 17-26%, unsecured 24-28%) less cost of debt, supplemented by a Rs 1,500 login fee, up to 3% processing fee plus GST, property-related charges, and penal interest of 24% annualized on overdue EMIs. GTM is sales-led and branch-led in semi-urban/rural India, complemented by direct-to-consumer digital channels and community engagement (bike rallies, financial literacy drives). The company is venture-backed following a May 2025 Series A of Rs 475 crore (~USD 53-56 million) from TVS Capital Funds, Lok Capital, Evolvence Equity Partners, and Paragon Partners at a post-money valuation exceeding Rs 900 crore, and holds an ICRA A-/Stable long-term and ICRA A2+ commercial paper rating assigned in January 2026.

Name

Saarathi Finance

Legal name

Saarathi Finance and Credit Private Limited

Website

https://saarathifinance.com

Company type

Private

Founded year

2024

Operating status

Operating

Headcount range

101–250 employees

Short description

Saarathi Finance is an RBI-registered Indian NBFC providing secured and unsecured business loans to underserved micro and nano MSMEs in semi-urban and rural India, operating 60+ branches across 7 states via a tech-enabled lending platform.

Ownership category

akta.pro rank

Product category

MSME Lending

NAICS

Nondepository Credit Intermediation (5222), Credit Intermediation and Related Activities (522)

SIC

Miscellaneous Business Credit Institution (6159), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

SME Term Loans & Growth Capital (FSAKAGAB)

akta.pro secondary industry

Merchant Cash Advance & Revenue-Based Financing Enablement (FSAGALAH)

Keywords

• MSME business loans
• Secured business lending
• Rural credit access
• Tech-enabled NBFC
• Credit assessment services

Headquarters

HQ city

Mumbai

HQ country

India

HQ region

Asia

Offices8 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Interest Income: Primary revenue from interest charged on secured and unsecured loans to MSMEs. Secured loans range from 17-26% p.a., unsecured loans from 24-28% p.a. The company earns spread between rate charged to customers and cost of funds from lenders.
2. Loan Processing Fees: Login fee of ₹1,500 including GST and processing fee up to 3% of sanctioned loan amount plus GST charged at loan origination.
3. Charges and Penalties: Various charges including property verification, stamp duty, legal notices, cheque returns, collection charges, and penal charges on overdue EMIs (24% annually).

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels6 records

Core offering

Saarathi Finance operates as a tech-enabled lending NBFC providing secured (17–26% p.a.) and unsecured (24–28% p.a.) business loans to micro, small, and medium enterprises in semi-urban and rural India. The company combines a 60+ branch physical distribution across 7 states with a digital lending platform featuring digital KYC, Account Aggregator-based bank statement analysis, and dual credit bureau (CRIF and CIBIL) assessment to serve borrowers excluded from mainstream formal credit.

Product overview

Saarathi Finance operates as a tech-enabled lending platform offering a dual product portfolio: Secured Business Loans (collateral-backed, 17%-26% interest rate) and Unsecured Business Loans (collateral-free, 24%-28% interest rate). Both products target MSMEs in semi-urban and rural India. The platform provides supporting tools including an EMI Calculator and Free Credit Score Check service, with the credit assessment leveraging CRIF High Mark and CIBIL credit bureaus for comprehensive borrower evaluation. The company also facilitates embedded insurance products through its Axis Max Life partnership.

Differentiator

Problem solved

Functional benefit

Products and services

• Secured Business Loans Collateral-backed business loans for MSMEs, micro and nano entrepreneurs, and small business owners, with interest rates ranging from 17% to 26% per annum depending on risk category and collateral type. Loan proceeds support business expansion, working capital, inventory financing, and equipment purchase.
• Unsecured Business Loans Collateral-free business loans targeting micro and nano entrepreneurs and self-employed individuals who lack sufficient collateral for traditional bank financing, with interest rates ranging from 24% to 28% per annum reflecting the higher risk profile.

Quantifiable outcome

• Rs 475 crore equity capital raised in inaugural funding round
• +1 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Five partnerships are on record, tiered core and supporting.

• Axis Max Life InsurancecoreStrategic or Co-development Partner · 19 March 2026Strategic partnership to offer embedded insurance products to MSMEs in India, enhancing financial security for micro and nano entrepreneurs. Targets credit gap and insurance needs in semi-urban and rural areas, particularly Tier 3 and Tier 4 towns. Collaboration aims to bridge insurance gap and promote financial inclusion.
• Credit Information Companies (CIC/Bureaus)coreTechnology or IntegrationIntegration with credit bureaus including CRIF High Mark and CIBIL for credit assessment. Also shares borrower debt information with bureaus for credit reporting.
• Account AggregatorscoreTechnology or IntegrationIntegration with account aggregators for fetching bank statements and transaction data to analyze banking conduct and balances for credit decisioning.
• UIDAI (Unique Identification Authority of India)coreTechnology or IntegrationAadhaar-based KYC authentication through UIDAI for identity verification, including biometric authentication.
• CGFMU/CGTMSE (Credit Guarantee Fund for Micro Units / Credit Guarantee Fund Trust for Micro and Small Enterprises)supportingOthersSaarathi Finance offers guarantee cover from CGTMSE for eligible MSME loan proposals, providing security for loans to micro and small enterprises.

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• AU Small Finance Bank: Established SFB with deep MSME and small-business lending franchise across semi-urban/rural India; broader banking portfolio but overlaps directly on customer segment and secured/unsecured SME loan products — a key competitive benchmark.
• Cholamandalam Investment and Finance: Large diversified NBFC with a meaningful MSME and SME secured-loan book across India; operates at much greater scale but overlaps on the secured business-loan product, branch-led SME distribution, and asset-quality discipline Saarathi aspires to.
• Bajaj Finance: India's largest retail-focused NBFC with a substantial MSME and small-business lending franchise; broader product portfolio but a benchmark competitor on rate card, digital origination, and brand-led customer acquisition in tier-2+ markets.
• IIFL Samasta Finance: NBFC subsidiary of IIFL focused on micro-finance and small-business loans in underserved Indian geographies; comparable on rural/semi-urban borrower profile, group- and individual-liability products, and the mission of formalizing informal credit demand.

Direct peers

• Kinara Capital: NBFC focused on collateral-free and secured business loans to small/micro enterprises in semi-urban India; near-identical target borrower, similar secured/unsecured rate bands, and comparable branch-led distribution model.
• KreditBee: Digital lending NBFC serving self-employed and small-business borrowers with personal/business loans at similar yield ranges; comparable on pricing band (24–28%), target borrower profile, and tech-led origination.
• Indifi Technologies: Lending platform originating MSME loans via partnerships and direct channels using cash-flow underwriting; comparable on target segment, data-driven underwriting approach, and SME term-loan product.
• FlexiLoans: Digital MSME lender offering unsecured business loans to small businesses using alternate data and bureau scoring; directly comparable on customer segment (micro/small MSMEs) and tech-enabled underwriting stack.
• Lendingkart: Fintech-NBFC providing working-capital and term loans to MSMEs using digital underwriting and bureau analytics; directly comparable on product (MSME term loans), customer segment, and tech-led origination.
• InCred Finance: Tech-enabled NBFC offering unsecured personal and business loans to underserved borrowers; Saarathi's founder Vivek Bansal was previously Group CFO at InCred, and the lending-thesis (data-driven underwriting, prime-plus yields) is highly comparable.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/SaarathiFinance
• YouTubeyoutube.com/@SaarathiFinance
• Facebookfacebook.com/profile.php
• LinkedInlinkedin.com/company/saarathifinance
• Instagraminstagram.com/saarathi_finance

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds1 record

Investors4 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Saarathi Finance