NBFC Seeds Fincap raises over $4.5 mn in DFI through NCDs

Non-bank lender Seeds Fincap Private Limited has announced that it has raised over $4.5 million in its first Development Financial Institution (DFI) through Non-Convertible Debentures (NCDs), which was led by impact investor responsAbility Investments AG. Earlier this month, the Gurugram-based finance company said it has raised $8.5 million (about Rs 70 crore) in funding led by Lok Capital and Matrix Partners India.

Speaking about raising over $4.5 million in its first Development Financial Institution, Subhash Chandra Acharya, MD & CEO of Seeds Fincap, said: "This funding is more than just capital; it's a catalyst for transformation. We are excited to harness this support to revolutionize financial accessibility across the nationand drive meaningful change."

Seeds Fincap, established in the year 2021 by its founders Subhash Chandra Acharya and Avishek Sarkar, is a financial institution that specialises in offering secured and unsecured loans to micro, small, and medium enterprises (MSMEs). The loan amounts range from Rs 1 lakh to 5 lakh in ticket size. Seeds Fincap utilises a thorough credit assessment process to assess the cash flows of the borrowers meticulously. This evaluation allows the company to provide loans at competitive and suitable interest rates for the MSMEs seeking financial assistance.

The small businesses-focused lender will be using the funds to expand lending capabilities, enhance technological infrastructure, and broaden branch footprint. The company provides secured and unsecured loans of up to Rs 5 lakh, it said, adding that the MSME segment is underserved by the lenders at present, which has created a credit deficit of Rs 8 lakh crore.

The NBFC has also built a diversified liability base with over 35 lending partners, including AU Small Finance Bank, Tata Capital, IDFC Bank, Yes Bank and Vivriti Capital.

Co-founder Avishek Sarkar said: "With this funding, we are poised to pioneer new frontiers in financial solutions. Our ability to secure substantial investments from prominent investors validates our mission and strengthens our resolve to reach deeper into communities that need it the most."

This infusion of capital marks a significant step in Seeds Fincap's mission to empower dreams and drive financial inclusion across India. It comes at a pivotal time as Seeds Fincap recently celebrated the opening of its 100th branch in Vrindavan, a milestone that underscores the company's rapid growth and unwavering commitment to expanding its footprint.

The 2021-established Seeds has 100 branches in eight states, including Uttar Pradesh, Bihar, Rajasthan, and Haryana. It has disbursed over Rs 600 crore in loans, serving more than 50,000 customers, and expanded its loan book to over Rs 330 crore. The 100th branch was recently inaugurated in Vrindavan.