Rupifi raises $4.1 million in funding led by Quona Capital

Rupifi, an online platform that helps micro, small and medium-sized enterprises (MSMEs) find suitable financing, has raised $4.1 million in a pre-Series A funding round led by Quona Capital. The fundraising also saw participation from Ankur Capital and Flipkart cofounder Binny Bansal.

The company said the capital raised will be used to expand its product offerings, partnerships and to scale its team.

Launched in 2020, Rupifi offers MSMEs access to multiple lenders in a standardised way on digital business-to-business platforms and marketplaces, on similar lines to the Open Credit Enablement Network built by iSpirt.


“Indian SMEs have been struggling with getting access to capital for a long time,” Anubhav Jain, cofounder and CEO of Rupifi, told ET in an interview. “We are targeting one million MSMEs in the next five years.”

The company underwrites the loans offered to MSMEs and provides them with flexible payment options where interest is calculated only on the number of days they use the credit.

In March last year, Rupifi raised $650,000 in an angel round from prominent angel investors like Ashneer Grover, founder of BharatPe, Kunal Shah, founder of Cred, and Livspace founder Ramakant Sharma among others.

“Rupifi’s solution is innovative in addressing the fundamental gap of transaction-linked credit on B2B commerce platforms,” said Varun Malhotra, principal at Quona Capital. “Merchants on these platforms are often offered loans, but Rupifi enables them to make on-the-spot decisions of buying more inventory for growth at the point of purchase. Flexibility in cash flow management is key to serving the credit-starved MSME merchants.”