SarvaGram, a rural-focused lending and distribution platform, has successfully raised Rs 565 crore (approximately $67 million) in its Series D funding round, led by Peak XV Partners. The round also saw participation from existing investors such as Elevar Equity, Elevation Capital, Temasek, and TVS Capital. With this latest infusion, SarvaGram has raised a total of Rs 950 crore ($113 million) since its inception, marking a significant milestone in the company’s growth journey.
Founded in 2019 by Utpal Isser and Sameer Mishra, the Pune-based startup aims to enhance financial inclusion by offering a range of credit products designed to improve productivity and access to financial tools in rural India. SarvaGram provides loans in various categories, including business, farm, personal, home, and gold loans, along with additional services like farm mechanization and risk mitigation.
The company plans to utilize this latest funding to expand its product offerings and extend its services to more regions across India. With over 100,000 customers served across five states and 150 branches, SarvaGram is already making a significant impact in the rural financial sector. Its assets under management (AUM) have reached approximately Rs 1,200 crore, with over 70% of the loan portfolio secured by property collateral.
SarvaGram collaborates with several partner lenders, including IDFC First, AU Small Finance Bank, and Oxyzo, to offer financial products through Sarvagram Fincare. The company’s strong network of partners plays a key role in its expansion and ability to deliver customized solutions to rural customers.
In FY24, SarvaGram reported a remarkable 2.3x growth in revenue, reaching Rs 169.8 crore, up from Rs 73.4 crore in FY23. The company also successfully reduced its net losses by 27%, bringing them down to Rs 19.74 crore.
Elevar Equity remains the largest shareholder in SarvaGram, holding a 30.97% stake, with co-founders Isser and Mishra owning 13.33% and 8.52%, respectively.
As SarvaGram continues to scale, it faces competition from other players in the space, including Jai Kisan, which raised $50 million in its Series B round in July 2022. Jai Kisan recently acquired an NBFC license, further intensifying the competition in the rural lending sector.
SarvaGram’s commitment to financial inclusion and its strong growth trajectory position it well to capitalize on the expanding market for rural credit in India. With the new funding, the company is poised to continue its expansion and deliver vital financial services to underserved communities across the country.
