Fintech Startup axiTrust Raises INR 23.5 Cr To Push Surety Bond Adoption

Fintech startup axiTrust has raised INR 23.5 Cr (about $2.6 Mn) in the seed round, led by General Catalyst, with participation from Atrium Angels, YAN Network, Supermorpheous, and a clutch of backers. 

The money will help the startup develop comprehensive digital infrastructure that accelerates the adoption of surety bonds across India’s banking, insurance, and procurement sectors. 

Surety bonds are insurance-backed guarantees that assure a buyer or project owner that a business will fulfil its contractual obligations. Instead of blocking the capital as collateral, they allow companies to pay a premium to secure the guarantee, helping free up working capital and reduce financial strain.

Earlier this year, Inc42 exclusively reported that axiTrust is looking to raise nearly INR 22 Cr from General Catalyst, based on its regulatory filings.

Founded in 2024 and headquartered in Gurugram, axiTrust is helmed by Aditya Tulsian (CEO), Rajeev Chari (COO), and Mukund Daga (CRO). The axiTrust platform issues, underwrites and manages digital surety bonds, providing an alternative to traditional, collateral-heavy bank guarantees. 

More than INR 15 Lakh Cr of MSME working capital is locked up as collateral for bank guarantees, and replacing these traditional guarantees with insurance-backed digital surety bonds can free that capital, expand credit access, and improve trust in business transactions, the startup said in a statement. 

Additionally, regulations from the Insurance Regulatory and Development Authority of India (IRDAI) and amendments to government procurement norms have created tailwinds for digital surety bond adoption. “For decades, access to growth capital has been held back by the rigidity of collaterals. Surety bonds mark a paradigm shift, enabling liquidity to flow freely through the economy,” Tulsian said.

The fundraise comes at a time when fintech startups are reshaping the lending landscape by using technology to make credit faster, smarter, and more accessible. 

From digital underwriting and AI-based risk assessment to cashflow-based lending and embedded finance, they are filling long-standing gaps that traditional banks could not address efficiently. These solutions are helping businesses and consumers access credit with fewer delays, lighter paperwork, and better transparency. 

Investors are actively backing such startups because the lending market in India is massive, still underserved, and primed for digital disruption offering both strong growth potential and meaningful financial inclusion.

For instance, a few weeks ago fintech startup Zynk bagged $5 Mn (about INR 44 Cr) in its seed funding round led by Web3 and blockchain-focussed investment firm Hivemind Capital. 

As per Inc42’s State Of Indian Fintech Report H1 2025 report, homegrown fintech startups raised more than $1.6 Bn in the first half (H1) of the ongoing calendar year, up 60% from $1 Bn raised a year ago.