Vivek Bansal has stepped down as InCred’s group CFO and is set to launch his own MSME-focussed NBFC venture, Saarathi Finance
Bansal has joined hands with Sunil Daga, president of Kotak Mahindra Bank, for his new venture
Saarathi Finance, currently awaiting approval from the RBI to operate as a NBFC, is in talks with investors to raise INR 600 Cr at a likely valuation of INR 1,000 Cr
Vivek Bansal has reportedly stepped down as InCred’s group chief financial officer (CFO) after a six-year stint at the fintech company and is set to launch his own MSME-focussed NBFC venture, Saarathi Finance.
Bansal has joined hands with Sunil Daga, president of Kotak Mahindra Bank, for his new venture, Moneycontrol reported, adding that both executives have resigned from their respective companies and are in talks with investors to raise funds for Saarathi Finance.
Inc42 has reached out to Bansal for confirmation. The story will be updated based on the response.
The LinkedIn profiles of both executives showed them still working at their respective firms. However, the report said that they are currently serving their notice periods.
As per the report, Saarathi Finance is registered in Mumbai and has sought approval from the Reserve Bank of India to operate as a non-banking financial company (NBFC).
The company is reportedly in talks with investors to raise INR 600 Cr at a likely valuation of INR 1,000 Cr. Of these, some equity infusion might come from Bansal and Daga.
Upon getting the NBFC licence, Saarathi Finance plans to offer secured loans to MSMEs in the range of INR 5 Lakh-20 Lakh and unsecured loans to individuals with a ticket size of INR 1 Lakh-5 Lakh, as per the report.
The company also reportedly plans to launch a digital-first B2B2C super app to cater to borrowers in urban and semi-urban regions, which will put it in direct competition with players like Bajaj Finserv, Indifi, Lendingkart, FlexiLoans and InCred, among others.
This comes at a time when NBFCs, especially targeted at the under-served MSME sector, are attracting significant investor interest. For instance, in June, lending tech startup Aye Finance raised a debt funding of INR 250 Cr (around $30 Mn) from Dutch entrepreneurial development bank FMO.
The same month, Arthan Finance also raised INR 50 Cr in its Series B funding round led by Incofin India Progress Fund.
Last month, fintech startup FlexiLoans secured a debt funding of INR 75 Cr (around $9 Mn) from JM Financials through private placement of non-convertible debentures (NCDs).
According to Inc42 analysis, the Indian lending tech market is poised to reach a market size of $1.3 Tn by 2030.
