SarvaGram, a rural household-focused lending and distribution platform, has raised $35 million in a series C funding round.

Led by Elevar Equity, the funding round also saw participation from Elevation Capital, Temasek, and TVS Capital Funds.

As per the startup, the raised funds will be used to expand its distribution network by adding 75 more outlets to reach 125 by the end of FY 2024. The raised funds would also be deployed by the startup towards strengthening the technology layer, both in terms of hiring tech talent and solidifying the existing tech stack, to support and enhance business operations.

Additionally, SarvaGram plans to advance its data analytics capabilities to enhance customer experience and offerings, along with widening the customer funnel.

SarvaGram | Rural Finance & Distribution

Founded by Utpal Isser and Sameer Mishra, SarvaGram is a data-led rural household-focused lending and distribution platform that offers a bouquet of financial and productivity-enhancing offerings.

Headquartered in Mumbai, the lending and distribution platform currently operates out of eight hubs, with over 50+ outlets across four states. It has more than 250 franchise partners covering 8,000 odd villages.

Speaking about the development, Utpal Isser, Co-founder, MD, and CEO of SarvaGram, said,

“Sameer and I are extremely privileged and excited to on-board our new investors Temasek and TVS Capital Funds to SarvaGram, and are very thankful to Elevar Equity and Elevation Capital for their continued belief in us, our platform, and in the strength of India’s growing rural economy.”

As per the startup, it leverages its location selection criteria, critical field-based market insights, micro-segmentation of households and proprietary underwriting algorithms that factor in frequency, variability, and resilience of incomes at household levels.

Utpal added that the raised funds would boost the startup’s mission of putting more power in the hands of rural households by enhancing the technology platform, strengthening the data analytics layer apart from growing its distribution and adding on-ground human capacity.

Commenting on the development, Mridul Arora, Partner, Elevation Capital, said,

“We are delighted to double down on our partnership with Utpal, Sameer, and the SarvaGram team as they pioneer a household-focused approach to rural lending and distribution. Their lending offering is unique and creates the foundation to offer a range of solutions—unlike the urban salaried individual with a payslip, assessing income for a rural borrower is tricky—given multiple income streams, variability in agricultural earnings, and limited paper trails.”

This year, several lending startups have raised funds, including Progcap, MSME lending platform Aye Finance, and FlexiLoans.

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