Prayaan Capital Raises $ 1.2 Million as Seed Funding
Chennai-based NBFC, Prayaan Capital announces the closure of a $1.2 million seed investment round led by Accion Venture Lab. According to the IFC, with the improving credit access for Indian entrepreneurs, still, there is a credit gap of $400 billion for the MSME in India. Thus, Prayaan Capital has taken the initiative to address this issue through an innovative business model that relies on brick and mortar branches as well as back-end and customer-facing digital tools as a measure to help the small businesses gain access to credit by digitizing their operations.
"We have a vision to make a difference for India's MSMEs by providing a holistic financial journey that addresses all of their business needs and brings them into the formal financial ecosystem. We are excited to collaborate with Accion Venture Lab, which brings insights from its work with fintech working to reach the underserved across four continents. We take Venture Lab's investment as a sign of their confidence in our potential for continued growth and impact. We always keep our focus aligned to our customers and join each one on their financial journeys. Our aspiration is to be a 'neighborhood lender' to which these small businesses go for credit and other financial products. This latest milestone is the tip of the iceberg, and we expect continued growth and impact thanks to our innovative technology platform and value-add services," states Madhan Mohan, MD & CEO, Prayaan Capital Based in South India, Prayaan Capital has a plethora of small scale manufacturers and unorganized tier III and IV traders. Also, Prayaan has already disbursed 80 million to a varied customer base of the small-scale entrepreneur. Further, the company would use the funding raised to invest in technology and expand its operations.
"With credit needs that are too small for traditional financial institutions and too large for microfinance lenders, many of India's entrepreneurs remain unable to access the credit they need to sustain and grow their businesses. Accion Venture Lab exists to help inclusive fintech startups like Prayaan Capital leverage technology to meet this need," says Michael Schlein, President & CEO, Accion.
Accion Venture Lab aids the innovative fintech startups by providing capital and extensive support that would help the startups to improve their reach, quality and affordability to take the financial services to the underserved.
"With its innovative approach and a strong, experienced team, Prayaan Capital is a welcome addition to our portfolio. The company not only helps entrepreneurs gain access to credit but also helps accelerate the digital transformation of their businesses, leading to greater efficiency and growth," states Tahira Dosani, Managing Director, Accion Venture Lab.