GrowXCD Raises INR 50 Cr From Lok Capital, UC Impower

GrowXCD Raises INR 50 Cr From Lok Capital, UC Impower

SUMMARY

The NBFC will deploy the fresh proceeds in enhancing its portfolio

It will also explore untapped markets in the southern part of the country to provide credit support to MSMEs

With the latest infusion of INR 20 Cr, Lok Capital’s total investment in GrowXCD Finance increased to INR 70 Cr

Venture capital firm Lok Capital and UC Impower have reportedly invested INR 50 Cr ( around $5.7 Mn) in GrowXCD Finance. 

The NBFC will deploy the fresh proceeds in enhancing its portfolio and to explore untapped markets in the southern part of the country to provide credit support to MSMEs, as per an ET report. 

With the latest infusion of INR 20 Cr, Lok Capital’s total investment in GrowXCD Finance increased to INR 70 Cr. 

UC Impower, equity fund of Unitus Capital invested INR 30 Cr in the NBFC, the report added. 

After securing fresh proceeds, GrowXCD’s net worth has grown to INR 110 Cr. 

Inc42’s queries to GrowXCD did not elicit any response till the time of publishing the story.

Founded in 2022 by Arjun Muralidharan and Sathishkumar Vijayan, Chennai-based GrowXCD aims to develop credit infrastructure for the MSMEs and low-income households by enabling institutional capital to seamlessly flow into retail assets secured by mortgages. 

The NBFC has its branches in Tamil Nadu and it offers two products – GrowShubam and GrowVyapaar focused on households and MSMEs, respectively.

In November 2023, GrowXCD Finance secured INR 50 Cr ($6 Mn) in its Series A funding round led by Lok Capital.

The development comes at a time when multiple NBFC’s are securing fund to bridge the credit gap for MSMEs.

Recently, Gurugram-based NBFC startup Bizloan raised INR 35 Cr in a Series A funding round led by Michael & Susan Dell Foundation and BLinC Invest.

Last month, Bengaluru-based NBFC Avanti Finance secured $14.2 Mn (around in a Series B extension round from Dia Vikas Capital.

Another NBFC Aye Finance is eyeing a public listing by raising up to INR 1,450 Cr through an initial public offering (IPO). 

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