Home / Business and Economy / Prayaan Capital Secures Rs 110 Cr for MSME Funding Gap
Prayaan Capital Secures Rs 110 Cr for MSME Funding Gap
26 Feb
Summary
- Prayaan Capital raised Rs 110 crore led by Peak XV Partners.
- The funds will build a lending platform and expand MSME market presence.
- India's MSME credit gap is estimated at approximately $300 billion.
Prayaan Capital, a non-banking finance company, recently finalized a Rs 110 crore funding round spearheaded by Peak XV Partners. Following this significant capital infusion, the company, now under the controlling stake of former Five Star Business Finance CEO Rangarajan Krishnan, is set to enhance its operational capabilities.
The newly acquired funds are earmarked for the development of Prayaan Capital's proprietary lending platform. Additionally, the capital will support team expansion and strengthen the company's presence in key micro, small, and medium enterprise (MSME) markets throughout India.
This strategic investment directly addresses the persistent credit gap for India's MSMEs, which is estimated to be around $300 billion. Prayaan Capital's mission is to leverage technology and a deep understanding of customer needs to improve access to formal credit for small businesses.
