In a recent milestone for FinAGG Technologies, the fintech startup specializing in cash-flow-based supply chain finance, the company has successfully raised $11 million in its Series A funding round. The round was co-led by the prominent global impact investment managers BlueOrchard and Tata Capital Limited, with participation from the Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partners.

Adding to the financial backing, FinAGG also secured capital from Gray Matter Capital through Non-Convertible Debentures (NCDs), further solidifying its position in the market.

The newly acquired funds are earmarked for strategic initiatives, including expanding offline and online presence, enhancing global outreach, and driving product innovation. FinAGG’s commitment to staying at the forefront of technological advancements is evident in its plans to introduce blockchain technology to the industry, transforming the traditional underwriting process with cutting-edge solutions.

Nipun Kohli, co-founder and CEO of FinAGG, expressed enthusiasm about the developments, stating, “Our product and engineering department is currently working on bringing blockchain to an industry that has worked on conventional pen and paper underwriting until recently. These new features will help us look at borrowers differently and make underwriting in this space more meaningful.”

Established in 2020 by Kohli and R. Srinivasan, FinAGG operates as a supply chain platform, offering closed-loop credit solutions to distributors, retailers, and MSMEs through its proprietary platform, Quick Cash Flow.

FinAGG has disbursed loans exceeding Rs 5,230 crore to over 85,000 MSMEs, with a notable 20% of these enterprises being led by women entrepreneurs. The company’s commitment to financial inclusion is further demonstrated through its loan disbursement platform, Quick Cash Flow, which completed the RBI Sandbox for MSME lending in November 2023, offering low-cost loans. The platform is integrated with India Stack’s Aadhaar, GSTN, UPI, and NACH, providing lenders access to quick growth capital.

Having onboarded significant consumer brands, leading banks, NBFCs, and entities supporting MSME development in India since 2020, FinAGG boasts partnerships with notable names such as Marico, Pepsico, UGro, BluStar, Daikin, IDFC First Bank, HUL, and ITC.

Financially, the company’s revenues from operations witnessed substantial growth, reaching Rs 11.96 crore during the fiscal year ending March 2023, compared to Rs 3.69 crore in FY22. While the profit for FY23 decreased to Rs 8.56 lakh from Rs 23.81 lakh in the previous fiscal year, FinAGG remains poised for further success with its strategic investments and commitment to technological innovation.