[Funding alert] Fintech startup Prayaan Capital raises $1.2M in Seed spherical from Accion Enterprise Lab

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Prayaan Capital Non-public Restricted, a South India-based NBFC that lends to micro, small, and medium-sized enterprises (MSMEs) in India, has introduced the closure of a $1.2 million seed funding spherical led by Accion Enterprise Lab, Accion’s seed-stage inclusive fintech funding initiative.

 

Accion President and CEO Michael Schlein stated,

 

“With credit score wants which might be too small for conventional monetary establishments and too giant for microfinance lenders, lots of India’s entrepreneurs stay unable to entry the credit score they should maintain and develop their companies. Accion Enterprise Lab exists to assist inclusive fintech startups like Prayaan Capital leverage expertise to fulfill this want.”

 

Prayaan will use this new inflow of capital to put money into expertise and develop their operations.

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Based by two seasoned bankers, Madhan Mohan and Akash Chelvam, Prayaan Capital has strategically positioned its base in South India, which has a plethora of small scale producers and unorganised tier-III and IV merchants, all of whom are potential shoppers of its merchandise. With six operational branches in Tamil Nadu, Prayaan claims to have already disbursed Rs eight crore to a diverse buyer base of small-scale entrepreneurs. 

 

Madhan Mohan, MD and CEO of Prayaan Capital Non-public Restricted, stated, 

 

“We’ve a imaginative and prescient to make a distinction for Indian MSMEs by offering a holistic monetary journey that addresses all of their enterprise wants and brings them into the formal monetary ecosystem.”

Whereas entry to credit score for entrepreneurs in India is starting to enhance, there’s nonetheless an estimated MSME credit score hole of $400 billion, in response to the IFC. Prayaan Capital stated it really works to fulfill this want by an revolutionary enterprise mannequin that leverages Brick and Mortar branches and each back-end and customer-facing digital instruments in an effort to assist small companies digitize their operations and achieve entry to credit score.

 

“Prayaan Capital not solely helps entrepreneurs achieve entry to credit score, but in addition helps speed up the digital transformation of their companies,” added Tahira Dosani, Managing Director of Accion Enterprise Lab. 

 

Accion Enterprise Lab gives capital and helps fintech startups that enhance the attain, high quality, and affordability of monetary providers for the underserved and have the potential to scale. Backed by business and impression traders for the reason that launch of its third-party fund in 2019, Accion Enterprise Lab has invested in additional than 40 early-stage startups that function in 30 international locations worldwide.

 

Based in December 2018, and granted the NBFC Certificates of Registration in June 2019, Prayaan Capital affords small enterprise loans from $1,500 to $30,000 and focuses on micro and small companies, also known as the “lacking center.” The corporate stated this phase will not be serviced by formal monetary establishments, neither microfinance corporations on account of their small ticket measurement or by banks on account of their want for  documentation and better ticket measurement.

(Edited by Megha Reddy)

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