Seeds Fincap Raises Rs 100 Cr Series B to Expand Lending to Underserved MSMEs

Gurugram-based non-banking financial company (NBFC) Seeds Fincap has raised more than Rs 100 crore ($10.4 million) in a Series B round led by the Michael & Susan Dell Foundation.

Existing investors Z47 and Lok Capital also participated, alongside Norinchukin Capital and Alteria Capital.

The latest round gives Seeds Fincap fresh capital to expand its lending operations, strengthen its branch network and invest in technology and risk management.

Expanding access to credit

Founded in 2021 by Subhash Chandra Acharya, Avishek Sarkar and Sumeet Dhall, Seeds Fincap focuses on providing credit to underserved individual and MSME borrowers.

The company offers loans ranging from Rs 50,000 to Rs 10 lakh and uses a cash flow-based approach to assess borrowers.

Its target segment includes nano enterprises and small businesses where conventional credit assessment methods may not fully capture the cash flows of the business.

Seeds combines technology with field teams across sourcing, onboarding, credit assessment, documentation, collections and portfolio monitoring.

Scaling its branch network

The company plans to use the new funding to enter new markets while strengthening its existing branch network.

As of August 2026, Seeds Fincap had an AUM of Rs 722 crore and operated 164 branches.

The company also had more than 70,000 active members.

With the latest capital, Seeds is targeting an AUM of Rs 1,000 crore by March 2027.

Alongside expansion, the NBFC plans to continue focusing on credit assessment and portfolio quality.

Growing loan disbursements

Seeds Fincap disbursed around Rs 620 crore during FY26.

The company also reported that it closed both FY25 and FY26 profitably.

Its lending model is focused on small business owners and underserved borrowers, with loan sizes ranging from Rs 50,000 to Rs 10 lakh.

The company uses cash-flow assessment as part of its credit evaluation process, supported by field teams involved throughout the lending lifecycle.

Existing investors return

The Series B round follows multiple previous funding rounds.

In 2025, Seeds Fincap raised Rs 50 crore in a round led by Z47 and Lok Capital.

Earlier, in July 2024, the company raised more than $8.5 million in a Series A led by Lok Capital and Matrix Partners India, which is now Z47.

The participation of existing investors in the latest round adds to the company's capital base as it works toward its next stage of expansion.

Focus on MSME lending

Seeds Fincap's lending strategy is centered on individual borrowers, nano enterprises and small businesses.

For businesses whose financial activity may not fit traditional credit assessment models, the company uses a cash-flow-based approach combined with technology and on-ground teams.

Its operating model covers sourcing, onboarding, credit assessment, documentation, collections and portfolio monitoring.

The company's stated focus remains expanding access to credit while maintaining portfolio quality.

What's next for Seeds Fincap?

The fresh Series B capital will support market expansion, branch network growth and investments in technology and risk management.

With Rs 722 crore in AUM as of August 2026 and a target of Rs 1,000 crore by March 2027, Seeds Fincap is entering its next phase of growth in India's underserved MSME and small-business lending market.

The key focus will be balancing faster geographic expansion with credit assessment and portfolio quality as the company grows its loan book.