Seeds Fincap Secures $6 Million in Series A Funding from Lok Capital

Seeds Fincap Pvt. Ltd., an MSME focused financial institution with presence in six states through a network of 72 branches, has raised its Series A1 round funding from Lok Capital. The investment will be used as growth capital by the company to accelerate expansion in existing and new geographies in the upcoming fiscal year.

Lok Capital has committed to invest INR 500 million in Series A, of which the first tranche of INR 320 million has been closed. Bolstering its capabilities and laying the foundation for transformative growth, this financial boost not only strengthens SEEDS’s financial prowess but also stands as a resounding endorsement of the institution’s unwavering dedication to promoting financial growth.

Charting Ambitious Expansion Plans

Seeds Fincap was founded by Mr. Subhash Acharya and Mr. Avishek Sarkar in 2021 with the objective of meeting the financial needs of small businesses with customised products with a clear focus on risk management and leveraging technology. With Assets Under Management (AUM) of INR 212 crore, Seeds Fincap has over 700 employees, and an impressive track record of facilitating over 40,000 disbursements totalling INR 340 crore.

Seeds Fincap Pvt. Ltd.’s strategic expansion plan includes entering new geographies while simultaneously expanding its footprint in existing states. This investment from Lok Capital aligns with the company’s vision to reach more underserved areas and offer financial inclusion opportunities to a broader audience.

Mr. Subhash Chandra Acharya, MD and CEO of Seeds Fincap Pvt. Ltd., commented on this milestone, “With the support of Lok Capital, Seeds Fincap Pvt. Ltd. is gearing up for an exciting phase of growth and empowerment. We are thrilled to embark on this exciting phase of growth and expansion. The Series A funding is a testament to our dedication to empowering MSMEs and fostering economic development at the grassroots level Seeds Fincap Pvt. Ltd.’s accomplishment in securing Series A funding marks a pivotal juncture in its journey to redefine financial empowerment in India.”

Vishal Mehta, Founder and Partner at Lok Capital noted, “We have been impressed by Seeds’ systems driven approach, leveraging technology, hands-on operational management, and a strong focus on credit and risk. This aligns with our approach to investments in the financial services domain, and we look forward to working with the team as they expand into underserved geographies in north and central India.”

Lok Capital’s investment in Seeds Fincap Pvt. Ltd. reaffirms their commitment to backing innovative financial services companies that are solving access to finance for key demographic segments in India.

Empowering MSMEs

Seeds Fincap has consistently set itself apart by addressing the financial needs of underserved Micro, Small, and Medium Enterprises (MSMEs). The institution customizes its financial services to seamlessly align with the unique requirements of small and medium-sized enterprises, a sector often grappling with limited access to suitable funding avenues.

From Grassroots Initiatives to Flourishing Ventures

A distinctive hallmark of Seeds Fincap Pvt. Ltd. is its unwavering commitment to empowering small and medium entrepreneurs while fostering tangible growth and development at the grassroots level. By cultivating an environment conducive to entrepreneurial success and the expansion of small businesses, the institution actively contributes to employment creation, particularly among local youth.

A Catalyst for Economic Progress

The impact of Seeds Fincap’s initiatives extends far beyond individual enterprises. Its proactive approach translates into heightened economic activity, setting in motion a positive ripple effect that reverberates throughout the community. The institution’s emphasis on supporting and nurturing small-scale enterprises naturally stimulates growth across various sectors.

About Seeds Fincap Pvt. Ltd.

Seeds Fincap Pvt. Ltd. is a dynamic financial institution with a robust presence in six states, operating through 72 branches. The company’s mission is to provide exceptional financial solutions and opportunities to underserved Micro, Small, and Medium Enterprises (MSMEs), contributing to economic growth and employment generation at the grassroots level. With a focus on promoting the local economy and fostering entrepreneurship, Seeds Fincap is committed to making a positive impact on the communities it serves.

About Lok Capital

Lok Capital was founded in 2004 and has managed four funds so far with 40+ investments and 30+ exits made. Lok Capital IV invests in financial services, fintech, agritech, healthtech and climate tech seeds Fincap marks Lok Capital IV’s fourth investment following MoneyView (consumer finance fintech), Aquaconnect (aquaculture platform) and SuperBottoms (reusable diaper brand). Lok has offices in Chennai, Bangalore and Gurgaon.