Knight FinTech Raises $23.6 Mn To Build Infrastructure For Financial Institutions

AI-based banking and lending infrastructure provider Knight FinTech has raised $23.6 Mn (around INR 196 Cr) in its Series A round led by Accel, along with participation from IIFL, Rocket Capital, Prime Ventures, 3one4 Capital, Commerce VC, and Trifecta Capital.

In a statement, the startup claimed that it bagged the funding at a soonicorn valuation. However, it didn’t disclose the exact valuation.

The Mumbai-based startup plans to deploy the fresh capital to scale AI-first innovation in risk intelligence, automated credit underwriting, data analytics, and portfolio monitoring technologies. Besides, it also plans to expand its international footprint to the Middle East and Asia-Pacific. 

As part of this expansion plan, Knight FinTech has onboarded Sanat Rao, founder and MD of WithinTheBox.ai, as an investor and board advisor.

Founded in 2019 by Kushal Rastogi and Parthesh Shah, Knight FinTech provides technology infrastructure to banks, NBFCs and fintechs for digital lending, co-lending, embedded finance, and treasury management solutions.

It claims to have a client base of more than 85 financial institutions, including Bank of Baroda, Bank of India, UCO Bank, ICICI Securities, IIFL Finance, Kotak Prime, Bajaj Auto, Muthoot Fincorp, NABARD, NSDL Payments Bank, among others. 

The startup claims to have enabled over $7 Bn in cumulative disbursements and currently oversees more than $5 Bn in active assets under management (AUM). 

“Co-lending and treasury are already operating at a meaningful scale, while embedded finance and digital lending are accelerating rapidly. As all four engines come together, our ambition is to build category leadership across every segment we operate in, while staying deeply focused on execution quality and partner outcomes,” founder and CEO Rastogi said on the fundraise. 

With the latest funding round, Knight FinTech has raised more than $30 Mn to date. 

Knight FinTech posted a revenue of INR 30.1 Cr in FY24 and a net profit of INR 20 Lakh, according to Tofler. 

The funding comes at a time when the banking and fintech sectors in India are growing rapidly, in line with the country’s economy. The country’s fintech segment is expected to hit a revenue of $250 Bn by 2030. As a result, investors are backing startups leveraging technology to capitalise on the fintech opportunity. 

For instance, B2B fintech SaaS startup FinBox raised $40 Mn in its Series B round led by WestBridge Capital to offer B2B credit infrastructure and risk intelligence solutions to banks, NBFCs, and fintechs.

As per Inc42’s report, the fintech segment raised $2.5 Bn across 120 deals in 2025.