Chennai-headquartered GrowXCD Finance, a non-banking finance company, has raised nearly $22.8 million (Rs 200 crore) in fresh investment from Blue Earth Capital and Prosus Ventures, it announced on Wednesday.
The funding also saw participation from existing investors Lok Capital and UC Impower through a primary capital infusion, the startup said in a statement.
The company plans to utilise new funds to expand its portfolio and extend its network across more cities, the statement added.
“This milestone marks a pivotal step as we expand our portfolio, deepen our presence in underserved southern markets, and bridge the credit gap in India’s MSME landscape, thereby empowering and uplifting livelihoods,” said Arjun Muralidharan, founder, managing director, and CEO, GrowXCD Finance.
Founded in 2022 by Arjun Muralidharan, GrowXCD was established to enhance the economic growth of MSMEs and low-income households by providing them with access to capital. Operating more than 60 branches across Tamil Nadu, Karnataka, Andhra Pradesh, and Puducherry, GrowXCD caters to the financial needs of micro, small, and medium enterprises (MSMEs) in India.
GrowXCD focuses on income generation, working capital, and business expansion needs, driving credit formalization in underserved segments. The company boasts of a loan book exceeding Rs 300 crore.
“With rapid digital adoption, greater formalization, and supportive government initiatives, we see a massive opportunity to build tech-led lending solutions for this segment. GrowXCD, with its secured LAP offering, robust technology platform, and experienced leadership team, is well-positioned to bridge this credit gap while delivering meaningful impact for small businesses and strong financial performance,” said Gaurav Kothari, principal investor, Prosus India.
Unitus Capital acted as the exclusive financial advisor to GrowXCD Finance Limited on this transaction.
