Small businesses across India have often struggled with access to formal credit, especially in smaller towns and rural areas. But BizLoan, a non-banking financial company (NBFC), is on
Small businesses across India have often struggled with access to formal credit, especially in smaller towns and rural areas. But BizLoan, a non-banking financial company (NBFC), is on a mission to change that. The company has successfully raised Rs 35 crore (around $4 million) in a Series A funding round to expand its reach and provide much-needed capital to micro and nano enterprises.
In this article, we’ll dive into how BizLoan plans to use this new funding to expand its footprint and serve the underserved markets, helping thousands of small businesses thrive. We’ll also look at the innovative technology and strategies BizLoan is using to close the credit gap and drive financial inclusion.
BizLoan is a Gurugram-based NBFC that focuses on providing loans to small businesses, particularly those in underserved markets. Its primary aim is to bridge the gap in formal credit, which many micro and nano enterprises face, especially in Tier II and III cities.
By offering financial products tailored to businesses with informal income sources or limited access to traditional credit, BizLoan is empowering small entrepreneurs to scale and thrive in competitive markets. Since its inception, BizLoan has already disbursed over Rs 774 crore in loans to more than 3,000 entrepreneurs across regions like Haryana, Uttar Pradesh, Karnataka, and Rajasthan.
BizLoan recently raised Rs 35 crore in Series A funding, led by two major investors: the Michael & Susan Dell Foundation and BLinC Invest. Resurgent India acted as an advisor to BizLoan during this round, helping the company secure the much-needed capital for its next phase of growth.
This fresh round of funding will play a pivotal role in BizLoan’s strategy to expand into new, underserved markets. The company aims to support over 2,500 new micro and nano enterprises in the next 12 months. The focus will be on regions where access to formal credit is still very limited—places often overlooked by traditional lenders.
“Thanks to this funding, we can now scale our operations and extend our services to new areas, empowering businesses that need it the most,” said Rahul Jain, CEO and co-founder of BizLoan.
India’s Tier II and Tier III cities are experiencing rapid growth, but the availability of credit for small businesses in these regions remains a major challenge. BizLoan sees this as an opportunity to make a real difference by offering credit solutions designed for these markets.
A large number of small businesses in these areas are still excluded from formal financial systems, often relying on informal lenders or struggling to access capital for expansion. BizLoan aims to change this by providing an easy-to-use and accessible platform for these entrepreneurs.
One of the key differentiators for BizLoan is its use of technology to streamline the lending process. The company has developed an innovative credit assessment system, which it calls the ABC methodology: Asset, Behaviour, and Cashflow.
This system is designed to evaluate borrowers in a way that considers their unique financial situation, even if they don’t have a formal credit history. By leveraging technology, BizLoan is able to assess cash flow and other key financial indicators to approve loans more quickly and accurately than traditional banks.
“The traditional way of assessing credit doesn’t always work for micro-entrepreneurs. Many of them don’t have a credit score or formal income,” says Amit Ratanpal, Founder and MD of BLinC Invest. “BizLoan’s tech-driven approach is bridging that gap.”
BizLoan’s ABC methodology offers several advantages to small businesses:
The ultimate goal of BizLoan’s mission is not just to provide loans but to foster an ecosystem where small businesses can grow, create jobs, and contribute to the local economy. Access to credit is a crucial enabler for business growth, and by addressing this need, BizLoan is playing a key role in empowering entrepreneurs.
“The funding will help us increase our reach and provide the necessary resources to small businesses to scale up,” said Rakesh Goyal, Director at the Michael & Susan Dell Foundation. “When micro and nano enterprises have access to formal credit, it leads to job creation, higher incomes, and ultimately drives economic progress.”
With this new funding, BizLoan is positioned to grow rapidly in the coming months. The company’s immediate plan is to increase its presence in rural and semi-urban areas where access to credit is still a significant challenge. Additionally, the focus will be on refining and scaling its technology-driven lending model.
As it looks to serve thousands more businesses, BizLoan is also focused on developing sustainable talent and leveraging its investor network to create a strong, innovative culture that can adapt to the evolving needs of small businesses.
BizLoan is more than just a lender—it’s a catalyst for change in the Indian small business ecosystem. By providing affordable, accessible, and timely loans to micro and nano enterprises, BizLoan is helping to close the credit gap and foster entrepreneurship across the country.
The Rs 35 crore funding round marks an exciting new chapter for the company, and with its innovative use of technology, BizLoan is set to lead the charge in empowering small businesses across Bharat.
