Lok Capital and UC Impower invest Rs 50 crore in GrowXCD Finance

Impact investors Lok Capital and UC Impower have together put in Rs 50 crore equity in non-bank startup GrowXCD Finance, which provides loans to small businesses in Tamil Nadu, Karnataka and Andhra Pradesh.

"The fresh capital will be utilised to expand our portfolio, go deep into the untapped markets in southern India and to bridge the credit gap in the rural MSME landscape," GrowXCD Finance’s founder-cum-managing director, Arjun Muralidharan, told ET.

The company has customers in tier II and III cities.


Lok Capital invested Rs 20 crore in the tech-enabled non-banking finance company (NBFC), raising its total investment to Rs 70 crore.

"The progress and impact we have seen since the Series-A round has been commendable and has propelled us to invest further in the current round," Rajat Bansal, managing director of Lok Capital, said.

UC Impower, incubated by Unitus Capital, invested Rs 30 crore.

"We are a long-term, patient investor and look to support our portfolio companies through subsequent fundraises as well. Our typical holding period is five to seven years," said Mona Kachhwaha, co-founder and partner at UC Impower.

GrowXCD Finance's net worth has grown to Rs 110 crore after the fresh capital infusion.

Starting business in June 2023, the company has built a portfolio of Rs 130 crore. It aims to grow the portfolio to Rs 500 crore by March 2026.