Navadhan Capital, a pioneering rural-fintech startup, has successfully raised $1.5 million in a seed funding round, fueling its mission to revolutionize financial inclusion through its innovative AceN Tech platform.
The seed funding round was led by Varanium NexGen and co-led by Anicut Capital. Gemba Capital also participated in the funding round, highlighting the growing interest and confidence in Navadhan’s vision and potential.
The investment will enable the rural fintech startup to strengthen its position as a pioneer in bridging the gap between rural small businesses, micro, small & medium enterprises and financial institutions through its technology driven AceN Tech platform.
With a strong focus on empowering underserved rural communities, Navadhan aims to revolutionize the way small businesses access financial services and foster sustainable growth.
Navadhan’s AceN Tech platform serves as a vital link connecting rural small businesses and MSMEs with NBFCs and banks. The rural fintech startup eliminates the hurdles caused by a predominantly cash-based economy and limited banking track records in rural markets by facilitating seamless connections and leveraging data sciences.
Through its digital onboarding experience and proprietary alternative-underwriting model, which assesses digital footprints and cashflow surrogates, Navadhan is revolutionizing the financial landscape for rural entrepreneurs.
Pioneering Financial Inclusion in Rural India
With over 200,000 enrolled customers and disbursements exceeding INR 100 crore, Navadhan has made significant strides in driving financial inclusion in rural India. Through strategic partnerships with 15 lenders, including Ugro, Vivriti, Northern Arc, Caspian, Unitus, and TruCap, Navadhan has provided vital financial services to underserved small businesses.
The rural fintech startup’s user-friendly interface and simplified onboarding processes have proven instrumental in bridging the gap between rural entrepreneurs and formal financial institutions.
Founded in 2019 by Nitin Agrawal, Vijay Haswani, Anirudh Ramakuru, and Amit Biswal, the rural fintech startup has a solid vision to augment wealth creation for underbanked households.
With his extensive experience in the financial services sector, Nitin Agrawal recognized the untapped potential in rural markets and the role technology could play in addressing rural entrepreneurs’ challenges.
Agrawal’s leadership and the founding team’s expertise have been instrumental in Navadhan’s success and its positioning as a pioneer in rural fintech.
Future Growth and Impact
Nitin Agrawal, Founder and CEO of Navadhan, expressed his enthusiasm about the funding and said, “We are a tech-led and revenue-first fintech. Our mission is to help create new wealth for rural small entrepreneurs by solving their challenges.”
“With tech and people on the ground, we are making it work for the NBFCs and banks to generate priority sector assets. The new fundraiser will add tailwinds to our growth plans,” he added.
With the projected increase in smartphone and internet penetration, estimated to grow by 44 percent by 2030, along with the rising number of UPI transactions, most of which are anticipated to originate from rural markets, Navadhan is well-positioned to leverage this growth potential.
With plans to introduce credit limits for small businesses and digitize unorganized value chains, Navadhan aims to expand its impact further and promote climate-smart agricultural practices among its rural customer base.
Aparajit Bhandarkar of Varanium NexGen expressed confidence in Navadhan’s potential, emphasizing their focus on the informal market as a high-growth area.
Bhandarkar noted that Navadhan’s founders brought a wealth of experience in financial services and credited their tech-led approach for providing scalability to their model.
As the rural fintech startup continues to expand its reach and enhance its platform, it seeks to establish itself as the largest finance platform for rural India, facilitating financial services for NBFCs, banks, small businesses, and microenterprises.