Rural Credit Startup Sarvagram Eyes $50 Million Funding Round to Fuel Expansion

Mumbai-based rural credit startup Sarvagram is in advanced discussions to raise over $50 million from new and existing investors, potentially doubling its valuation to $170-200 million. Leading venture capitalists Peak XV, Apis Partners, and Beams Fintech Fund, alongside global impact investor Creation Investments Capital Management LLC, are among the top contenders for this funding round. The investment mix is expected to include both primary and secondary transactions, with existing investors such as Elevar Equity, Elevation Capital, Temasek, and TVS Shriram Growth Capital also participating.

Founded in 2018 by Utpal Isser and Sameer Mishra, Sarvagram focuses on providing digital lending solutions to rural households through its non-banking finance company (NBFC) arm, Sarvagram Fincare Private Limited (SFPL). The company operates a franchise model with local partners known as Sarvamitras to offer a range of financial products, including farm mechanisation solutions and insurance.

Sarvagram currently has 125 branches across Gujarat, Maharashtra, Karnataka, and Rajasthan and plans to expand further. Despite its high operational costs, the NBFC achieved profitability in FY24, reporting a profit of Rs 7.6 crore. The parent company, Sarvagram Solutions Private Limited, reduced its net loss to Rs 11.6 crore during the same period, with total assets under management growing significantly.

This funding round follows Sarvagram’s $35 million raise from private equity investors over a year ago, continuing its rapid growth in serving underbanked but creditworthy semi-urban and rural households.