Chennai-based GrowXCD Finance has secured Rs 50 crore in a series A funding round led by Lok Capital, with the initial Rs 30 crore tranche already closed. The firm, focusing on micro, small, and medium enterprises (MSMEs), plans to utilize the funds to establish its initial team, develop technologies, and expand its presence in both existing and new geographies over the next 12-18 months. CEO Arjun Muralidharan expressed that this investment and partnership with Lok Capital will be the foundation for GrowXCD to accelerate the economic development of MSMEs and low-income households in rural and semi-urban areas.
Founded in January 2022 by Arjun Muralidharan, GrowXCD aims to address the credit gap for small and medium businesses, particularly outside urban areas. The company obtained its non-banking financial company license from the Reserve Bank of India in April and operates 10 branches across Tamil Nadu. Leveraging technology, GrowXCD provides small business mortgage loans and home construction loans (GrowSubham) as well as short-term unsecured loans (GrowVyapaar). Lok Capital, with its extensive experience in MSME lending, sees an opportunity to create a differentiated business in the secured MSME space through this partnership. The investment is part of Lok Capital IV LLC’s second close of $135 million (approximately Rs 1,125.8 crores), focusing on financial services, agri-tech, health-tech, and climate-tech.
That’s awesome! GrowXCD Finance secured INR 50 crore in series A funding led by Lok Capital. They’ll use the funds to grow their team, develop technologies, and expand their presence. Exciting times ahead for them! sending my best wishes to Grow XCD team.
~ Dr Shishir said Gupta founder & CEO of StartupLanes
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