NBFC Seeds Fincap raises Rs 50 crore funding in round led by Z47, Lok Capital

Gurugram-based non-banking finance company (NBFC) Seeds Fincap has raised Rs 50 crore in a funding round led by existing investors Z47 and Lok Capital.

New investors Norinchukin Capital and Alteria Capital joined the round, which has taken place ahead of the company's planned Series B fundraise.

The fintech company, which currently has a presence across eight states with close to 120 branches, plans to add 40 more by the end of this year. “With this funding round, we are planning to expand to more branches, especially in states such as Rajasthan, Uttar Pradesh, and Bihar,” Subhash Chandra Acharya, co-founder, told ET.


Founded in 2021 by Avishek Sarkar and Acharya, the fintech company mainly offers unsecured lending. The company said that it was planning to increase secured lending in the next few years.

Seeds Fincap focuses on providing credit to underserved micro, small, and medium enterprises (MSMEs) across India, using technology to reach customers and monitor its portfolio. Currently, the company focuses on tier 2 and tier 3 cities, where most of its customers are located.

This comes as larger public sector banks are trying to make stronger partnerships with fintech startups as they seek to offer loans to MSMEs, as reported by ET.

The NBFC closed FY25 profitably, disbursing over Rs 1,000 crore in loans. The company manages over Rs 500 crore in assets and has maintained non-performing assets (NPAs) consistently below 2%, according to a company statement. Seeds Fincap has serviced over 50,000 borrowers, many of whom are first-time formal credit recipients.

The NBFC is focussed on supporting financial inclusion through tailored financial solutions and credit to small businesses.

Anish Patil, vice president at Z47, an early-stage venture capital firm, said, “Seeds Fincap’s deep focus on tech-enabled field operations and strong hold on credit underwriting, coupled with rigorous portfolio monitoring and a diversified presence, have helped deliver superlative asset quality in a testing market.”