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MSME Lending Boost: Vegafin Secures ₹1000 Crore Funding
21 Oct
Summary
- Vegafin received up to ₹1,000 crore investment from major firms.
- AI-driven underwriting will personalize credit decisions for MSMEs.
- Aims to bridge India's massive ₹30 trillion MSME credit gap.
Vegafin, an AI-driven platform focused on MSME lending, has secured substantial investment, with Premji Invest, Norwest, and Lok Capital committing up to ₹1,000 crore. Founded by ICICI Bank veteran Bijith Bhaskar, the firm will use these funds to enhance its technology platform and expand its reach.
A key part of the strategy involves acquiring a majority stake in Bizloan, a Gurugram-based NBFC specializing in secured MSME loans. This move supports Vegafin's plan to build a hybrid 'phygital' lending model.
The platform's core is its AI-driven underwriting, digital workflows, and data-led credit decisioning, designed to efficiently price risk and serve the underserved MSME sector. Vegafin aims to tackle India's over ₹30 trillion MSME credit gap by providing accessible and affordable credit.
Founder Bijith Bhaskar highlighted the need for a pan-India player with efficient cost structures. The acquisition of Bizloan is expected to improve turnaround times and risk selection, while scaling access for smaller businesses. Investors see a significant opportunity in leveraging technology to reduce friction in MSME lending.
