Jaipur-Based MSME Lender Kaabil Finance Raises $3M Funding Led by 2point2 Capital
Kaabil Finance, a Jaipur-based MSME loan provider, has made headlines by securing $3 Mn in pre-Series A funding led by 2point2 Capital. The funding round also saw participation from several undisclosed high-net-worth individuals (HNIs).
As per the startup, the freshly raised funds will be used to accelerate growth in its secured micro, small, and medium enterprises (MSME) loan book. This includes increasing its credit, risk, collections, and tech team size.
Kaabil Finance | Jaipur-Based MSME Lender
Founded by Ramavtar Meena in 2018, Kaabil Finance is an RBI-registered NBFC that helps small and medium-sized businesses towards greater participation in formal credit markets and offers nano and micro-loans of up to Rs 3 lakh to these businesses. The Jaipur-based MSME loan provider intends to achieve assets under management of Rs 1,000 crore in 1,000 days.
Speaking about the development, Ramavtar Meena, Founder and CEO of Kaabil Finance, said,
“We are elated with the support of such a high-calibre group of investors. This investment will allow us to accelerate our growth and continue to create a positive impact for our target customer segment.”
Growth of Lending Segment in India
In the past few years, there has been a rise in fintech firms offering lending services across categories, including education, home, and MSME loans. Recently, Vridhi Home Finance, a home finance lending fintech, bagged Rs 150 crore ($18 Mn) in its Series A funding round to expand its branches by adding 25-30 more in the next 12-18 months within the states of Karnataka, Andhra Pradesh, and Telangana. The funding round was led by Elevation Capital, an early-to-growth-stage VC investor.
Earlier in February, Lorien Finance, a firm offering education loans, secured seed funding of $1.8 million (around Rs 14.8 Cr) led by Venture Catalysts to boost the product stack and for geographical expansion. The same month, Sociallending Technologies and Holdings Pvt Ltd, which operates the mortgage lending platform LoanKuber, secured $2 million (around Rs 16.5 crore) as part of its Series A round for hiring and scaling up its assets under management (AUM) and technology stack.
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