Pragati Finserv

What Pragati Finserv does

Pragati Finserv Private Limited is a Hyderabad-based non-banking financial company (NBFC) operating as a Business Correspondent to Northern Arc Capital, focused on financial inclusion for underserved rural and semi-urban households across India. Incorporated in fiscal 2021 under CIN U65990TG2021PTC148992, the company targets a stated goal of reaching 1 million underserved rural households across at least 10 states by 2026, and as of September 2023 was operational across 8 states and 1 union territory. It is positioned as a bottom-of-the-pyramid lender combining institutional funding access through its parent with a phygital (assisted-digital) distribution model that pairs physical branches with digital workflows.

The company's core products are Krushi, a Joint Liability Group (JLG) microfinance loan with ticket sizes of INR 30,000-75,000, an interest rate of 23.9% and a 24-month tenor, and ATM (Any Time Money), an emergency loan product of INR 10,000-25,000 at 23.4% interest over 12 months. Delivery is via branches each covering approximately 100 villages, with a training centre set up per five branches, and a stated one-week turnaround from inquiry to disbursement. Underwriting relies on cash flow analysis, character assessment and social evaluation, supported by an integrated digital workflow application and an AI & Data Analytics platform that includes rule engine, credit engine, predictive analytics, geo-analytics and image analytics components.

The business model generates revenue through interest income on small-ticket loans originated on its own book and as a Business Correspondent channel for Northern Arc Capital. Leadership comprises Jagadish Babu Ramadugu as MD&CEO (appointed December 2020), Ashish Mehrotra as Non-Executive Chairperson (appointed February 2022, former MD & CEO of Northern Arc Capital), Vijay Kumar as COO, and Anil Kumar Gujja as CIO. No financial disclosures are publicly referenced in the available material.

Name

Pragati Finserv

Legal name

Pragati Finserv Private Limited

Website

https://pragatifin.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

101–250 employees

Short description

Pragati Finserv is a Hyderabad-based NBFC and Business Correspondent to Northern Arc Capital, providing JLG microfinance and emergency loans to underserved rural households across 8 Indian states plus 1 union territory, targeting 1 million borrowers by 2026.

Ownership category

akta.pro rank

Product category

Microfinance / Rural Lending

NAICS

Consumer Lending (522291), Nondepository Credit Intermediation (5222), Mortgage and Nonmortgage Loan Brokers (52231)

SIC

Personal Credit Institutions (6141), Loan Brokers (6163)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

akta.pro secondary industry

Bridge Loans & Emergency Short-Term Credit (FSAKAMAJ)

Keywords

• Microfinance lending
• Rural financial services
• Joint liability loans
• Small ticket credit
• Financial inclusion

Headquarters

HQ city

Hyderabad

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Business Correspondent Services: Operating as a Business Correspondent (BC) to Northern Arc Capital, providing small ticket loans through an efficient, agile and scalable digital platform to underserved rural and semi-urban areas
2. Microfinance Loans - Krushi: Joint liability backed term loans for income generation needs of underserved households through women's solidarity groups. Loan amounts INR 30k-75k with 23.9% interest rate and 1.5% processing fee
3. ATM Loans: Anytime loan for personal or business emergencies available to existing customers with clean credit history. Loan amounts INR 10k-25k with 23.4% interest rate and 1% processing fee

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels3 records

Core offering

Pragati Finserv provides small-ticket, collateral-free credit to underserved rural and semi-urban Indian households through two products: Krushi, a joint liability group term loan ranging from INR 30,000 to INR 75,000, and ATM (Any Time Loan), an emergency loan product ranging from INR 10,000 to INR 25,000. Loans are originated and serviced via a phygital model combining a branch network of field officers and branch managers with a digital workflow application and analytics platform.

Product overview

Pragati Finserv offers small ticket loans through a digital platform to underserved rural and semi-urban low-income households as a Business Correspondent to Northern Arc Capital. The product portfolio includes Krushi (joint liability group microfinance loan of INR 30k-75k) and ATM (any time emergency loan of INR 10k-25k), both delivered primarily through JLG methodology. Technology serves as the backbone enabling efficient customer service, quick turnaround time, and best-in-class service delivery.

Differentiator

Problem solved

Functional benefit

Products and services

• Krushi Krushi is a joint liability group (JLG) backed term loan ranging from INR 30,000 to INR 75,000, collateral-free, designed for income generation by underserved rural and semi-urban households in India. It is repaid in regular instalments over a term schedule.
• ATM (Any Time Loan) ATM is an emergency loan product ranging from INR 10,000 to INR 25,000, designed to provide quick liquidity to underserved rural and semi-urban households for emergency needs.

Quantifiable outcome

• Target to reach 1 million underserved rural households across at least 10 states by 2026

Segments4 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability4 records

Feature4 records

Scale indicators4 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Northern Arc Capital: Parent company and sole funding counterparty of Pragati Finserv. Northern Arc is a systemically important, RBI-registered non-deposit-taking NBFC focused on financial inclusion; Pragati operates as its Business Correspondent for the same target segment (underserved rural/semi-urban borrowers).
• CreditAccess Grameen: One of India's largest microfinance institutions, focused on JLG lending to rural women customers across multiple states. Operates in the same JLG microfinance category, target segment and rural geographic footprint as Pragati.
• Spandana Sphoorty Financial: Listed Indian NBFC-MFI focused on JLG microfinance to women borrowers in rural and semi-urban India. Directly comparable product (group lending, small-ticket, income-generation loans) and customer base to Pragati's Krushi product.
• Satin Creditcare Network: Indian NBFC-MFI providing JLG microfinance loans to underbanked women in rural India, with additional micro-enterprise and SME finance products. Directly comparable in product (JLG group lending), customer segment and rural geographic focus.
• Fusion Microfinance: Indian NBFC-MFI operating a JLG-based microfinance model across multiple states serving rural and semi-urban women borrowers. Highly comparable product structure, target segment and geographic approach to Pragati.
• Asirvad Microfinance: Bajaj Finance-owned NBFC-MFI offering group microfinance loans to women borrowers in underserved Indian geographies. Comparable JLG product, customer segment and financial-inclusion mission to Pragati.
• Muthoot Microfin: Part of the Muthoot Group, provides JLG-based microfinance loans to underbanked women in rural India. Directly comparable in product design (joint liability groups), target borrower profile and rural distribution model.
• Vaya Finserv: Indian NBFC focused on financial inclusion for underserved segments, where Pragati's CEO and CIO previously served as MD&CEO and CIO/CTO respectively. Operates in a similar product and customer segment and is a natural comparable for Pragati's strategy and operating model.
• Bharat Financial Inclusion (IndusInd Bank): Formerly a leading standalone Indian MFI (now part of IndusInd Bank), historically one of the largest JLG microfinance lenders to rural women. Pragati's COO previously held management roles here; product, target segment and rural JLG model are directly comparable.

Broad incumbents

• Bandhan Bank: Universal bank whose origins and core franchise are in microfinance; offers group micro loans, small business loans and rural banking products across India. Broader portfolio than Pragati, but the microfinance division is a directly comparable peer for JLG lending.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/pragatifin
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• Facebookfacebook.com/100083399143744

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

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 Pragati Finserv