Optimo Loan, a Bengaluru-based small business-focused lending startup, has made headlines by raising $10 million in its first equity fundraise. The seed funding round was co-led by Blume Ventures and Omnivore, where Prashant Pitti, the founder, also participated.

As per the startup, the freshly raised funds will be used for the expansion of its operations and to improve its technology stack. Further, the raised capital will enable the startup to recruit new talent and broaden its presence to twenty locations in rural India by the end of this year.

Optimo Loan | MSMEs-focussed Lending Platform

Founded by Prashant Pitti, who also co-founded the listed travel tech platform EaseMyTrip, Optimo Loan is a Bengaluru-based MSMEs-focussed lending platform that supports businesses to invest in new technologies, increasing liquidity and ensuring business continuity. Working with MSMEs operating in rural India, Optimo Loan offers working capital, equipment financing, merchant cash advances, expansion loans, and invoice financing.

Speaking about the development, Prashant Pitti, Founder of Optimo Loan, said,

“Optimo lending operations commenced in November 2023, and we are scaling swiftly yet prudently. We aim to establish an asset-light company by primarily leveraging co-lending agreements with banks and larger NBFCs.”

Statement from the Investors

Commenting on the development, Reihem Roy, Partner at Omnivore, highlighted the massive opportunity in the MSME lending segment. Roy stated that out of the 53 million businesses in need of credit, only 25% of MSMEs have access to formal credit sources, presenting a significant opportunity.

Pitti, with the services offered through Optimo, wants to bridge the $530 billion credit gap in MSME lending in India. For this, the Bengaluru-based startup is building an MSMEs-focussed lending platform with an underwriting method, allowing it to gain deep insights into the financial health of its customers.

As per the founder, the lending platform will leverage technology and a phygital distribution model to extend credit to this section of businesses.

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