Techfino Secures ₹65 Crore from Stellaris and Saison Capital to Expand MSME Lending

June 18, 2025: Techfino, a fintech non-banking financial company (NBFC), has announced that it has successfully secured ₹65 crore in equity funding. The investment comes from Stellaris Venture Partners and Saison Capital, the investment arm of Japan-listed Credit Saison. This capital infusion will enable the company to significantly enhance its secured lending operations, particularly targeting underserved micro and small enterprises (MSMEs) across India.

Strategic Expansion of Secured MSME Lending

Techfino intends to deploy the newly raised capital to:

• Expand its physical presence: The company plans to double its branch network from 30 to 60 locations over the next 12 months.
• Strengthen its team: Funds will support hiring across various roles to facilitate growth.
• Upgrade its proprietary technology platform: Enhancements will focus on improving credit risk assessment capabilities, especially in semi-urban regions of India.

Co-founder Rajesh Panda stated, “We’ve been profitable since our first full year of operations. This fundraising is purely equity and will be used to drive growth through branch-led expansion and people hiring, especially for our MSME loan against property business”.

Techfino’s Proven Model in Secured Lending

Founded in 2019 by Rajesh Panda, Jayaprakash Patra, and Ratikant Satapathy, Techfino operates across two verticals: unsecured education loans and secured loans against property (LAP) for MSMEs. While the education loan segment remains profitable, the company is now intensifying its focus on the secured side due to increasing capital intensity.

Techfino has already disbursed over ₹100 crore in secured loans, with a current monthly run-rate of ₹10 crore. With the new funding, the company aims to double this rate. The LAP segment primarily caters to small business owners, including kirana shop operators, dairy entrepreneurs, and traders in Tier-2 and Tier-3 cities across key states like Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh. Loan ticket sizes typically range from ₹8 lakh to ₹ 12 lakh.

Technology-Driven Underwriting

Techfino differentiates itself through its in-house tech stack, which integrates APIs for bank statement analysis, property verification, and legal checks, thereby reducing turnaround time and improving underwriting accuracy. The company utilises custom-built scorecards specifically designed for rural and informal-sector borrowers, allowing for efficient risk assessment comparable to those of urban fintech platforms.

Current Scale and Future Outlook

With more than 1 lakh loans disbursed across both verticals and total Assets Under Management (AUM) touching ₹200 crore, Techfino is positioning itself for sustained growth. The company collaborates with over 100 educational institutions, including Manipal and Amity, for its education lending business, which continues to perform well.

Looking ahead, Techfino aims to close FY26 with a significantly scaled-up secured loan book and stronger profitability, powered by deeper rural and suburban penetration and robust bank partnerships.

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