Prayas

What Prayas does

Prayas Financial Services Private Limited (PFSPL) is an RBI-registered Non-Banking Financial Company – Microfinance Institution incorporated on March 3, 2017 and operational since February 6, 2020. It is a wholly owned subsidiary of Ananya Finance for Inclusive Growth Pvt Ltd, which is in turn backed by Japan-based impact investor Gojo & Company Inc. The company provides microfinance loans — priced at a flat 28% p.a. ROI on a reducing balance method — to women in low-income households and micro-entrepreneurs in small towns and villages across Gujarat, Rajasthan, Madhya Pradesh, Bihar, and Uttar Pradesh. Loans target income-generating activities such as small retail (kirana stores, tea stalls), service enterprises (beauty parlours, welding and repair workshops), fruit and vegetable vending, and agricultural / allied ventures; credit life insurance is bundled with loans. The revenue model is straightforward interest income on the loan book plus ancillary insurance distribution economics, with distribution via a physical branch network using Joint Liability Group (JLG) lending methodology.

Name

Prayas

Legal name

Prayas Financial Services Private Limited

Website

https://prayasfinance.com

Company type

Private

Founded year

2017

Operating status

Operating

Headcount range

51–100 employees

Short description

Prayas Financial Services Private Limited is an RBI-registered NBFC-Microfinance Institution providing group-lending microfinance loans to women micro-entrepreneurs across five Indian states, using a proprietary automated credit decisioning platform and a branch-led distribution model.

Ownership category

akta.pro rank

Product category

Microfinance

NAICS

Credit Intermediation and Related Activities (522)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Microloans & Working Capital Loans (FSAKAGAA)

akta.pro secondary industries

Microenterprise Group Lending (Joint Liability) (FSAKAGAH), Microfinance, Financial Inclusion & Inclusive Markets (BPAGABAM), SME Credit Underwriting, Scoring & Risk Analytics (FSAKAGAL)

Keywords

• Microfinance lending
• Women microfinance loans
• Group lending JLG
• Rural credit services
• Income generation loans

Headquarters

HQ city

Haryana

HQ country

India

HQ region

Asia

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Microfinance Lending: Prayas Financial Services generates revenue through interest income on microfinance loans provided to low-income households and micro-entrepreneurs. Loans are priced at 28% p.a. ROI on reducing balance method. The company focuses on women borrowers for income-generating activities such as small retail, service enterprises (tea stalls, grocery shops, beauty parlours, welding units, repair workshops, fruit and vegetable vending), and agricultural ventures. Credit life insurance is bundled with loans.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Core offering

Prayas Financial Services Private Limited operates as a Non-Banking Financial Company – Microfinance Institution (NBFC-MFI) registered with the Reserve Bank of India, providing microfinance loans to women in low-income households and micro-entrepreneurs in small towns and villages. The company funds income-generating activities such as small retail (kirana stores, tea stalls), service enterprises (beauty parlours, welding units, repair workshops), fruit and vegetable vending, and agricultural ventures, with credit life insurance bundled with every loan. Operations are supported by a fully automated in-house technology stack and Aadhaar–Bank Account–UPI digital integration.

Product overview

Prayas Financial Services Private Limited operates as an NBFC-Microfinance Institution offering a single core product: microfinance loans targeting financially underserved households and informal micro-enterprises. The company provides loans for income-generating activities to women and microfinance graduates in small towns and villages across Gujarat, Rajasthan, Madhya Pradesh, Bihar, and Uttar Pradesh. The company bundles credit life insurance with its loans to provide financial protection, and all operations are supported by a fully automated end-to-end technology stack with an in-house Business Rule Engine for credit decisioning.

Differentiator

Problem solved

Functional benefit

Products and services

• Microfinance Loans Microfinance lending services targeting financially underserved women in low-income households and informal micro-enterprises, providing loans for income-generating activities such as small retail (tea stalls, grocery shops), service enterprises (beauty parlours, welding units, repair workshops), fruit and vegetable vending, and agricultural ventures, distributed through a group-based JLG (Joint Liability Group) lending model.

Named customers2 records

Segments3 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration12 records

Feature2 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Ananya Finance for Inclusive Growth Pvt LtdcoreStrategic or Co-development PartnerPrayas Financial Services is a wholly owned subsidiary of Ananya Finance for Inclusive Growth Pvt Ltd (Ananya), a reputed NBFC with over a decade of experience in advancing financial inclusion. PFSPL continues to advance Ananya's developmental mission of uplifting low-income populations through this subsidiary relationship.
• Gojo & Company Inc.coreStrategic or Co-development PartnerGojo & Company Inc. is a parent company of Ananya Finance. Board members including Mr. Guerol M Sari (COO) and Mr. Sanjay Gandhi (Co-founder and CIO) serve on PFSPL's board. The relationship connects Prayas to Gojo's network across Europe, Africa, and South Asia with over 3 decades of experience in retail banking, SME, and digitization.
• Niva BupaminorOthersInsurance partner providing health insurance products bundled with Prayas financial services.
• Insurance DekhominorOthersInsurance partner providing insurance products through Prayas Financial Services.

Scale indicators2 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• Fusion Microfinance: Mid-sized NBFC-MFI offering JLG microfinance loans to women micro-entrepreneurs across underbanked Indian states. Closely comparable to Prayas in target segment, JLG methodology, and multi-state northern/western India footprint; recently listed and at similar operational stage.
• Svatantra Microfin: Indian NBFC-MFI focused on women micro-entrepreneurs using group lending methodology across rural and semi-urban India. Highly comparable mission, product, and borrower profile to Prayas.
• Muthoot Microfin: Indian NBFC-MFI providing JLG loans to women in low-income households for income-generating activities. Directly comparable product/segment; backed by the larger Muthoot Group giving it access to broader capital and brand recognition.
• Asirvad Microfinance: NBFC-MFI with a similar JLG-based lending model targeting women micro-entrepreneurs in underserved Indian markets. Comparable in product, methodology, and borrower segment; operates at a meaningfully larger scale with similar multi-state presence.
• Ananya Finance for Inclusive Growth: Parent NBFC of Prayas, providing financial inclusion loans to underserved MSMEs and low-income households in India. Most directly comparable peer given shared ownership, board, and inclusive-finance mission; operates at a larger, more mature scale than its subsidiary PFSPL.

Broad incumbents

• Satin Creditcare Network: Listed Indian NBFC-MFI providing group and individual microfinance loans to under-served women borrowers. Comparable product set and customer profile; significantly larger with diversified MSME and microfinance arms.
• CreditAccess Grameen: One of India's largest NBFC-MFIs by AUM, focused on JLG lending to women in rural and semi-urban households. Directly comparable to Prayas on product, customer segment, and group-lending methodology, though significantly larger in scale and public-market listed.
• Spandana Sphoorty Financial: Large listed Indian NBFC-MFI providing JLG-based microfinance loans to low-income women. Comparable on customer segment and product; operates at materially larger scale with multi-state presence similar to Prayas's geographic approach.
• Bandhan Bank: Universal bank originating from Bandhan's microfinance operations, serving micro-borrowers and small enterprises across India. Comparable heritage and customer segment; substantially larger, with full banking license and deposit franchise.
• Ujjivan Small Finance Bank: Small Finance Bank evolved from Ujjivan Financial Services, serving underbanked and microfinance-migrated customers with deposits, loans, and insurance. Comparable customer base to Prayas; offers broader banking products and significantly larger scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

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Revenue estimate

Valuation estimate

Number of profiles

Profiles6 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 Prayas