Finance News

Namdev Finvest Raises $15 Million to Boost MSME Lending and Green Finance

Namdev Finvest, a non-banking finance company (NBFC) that provides financial solutions to micro, small and medium enterprises (MSMEs) in rural and semi-urban areas, has raised $15 million in its Series B funding round. The round was co-led by British International Investment (BII), LC Nueva AIF (LC), and existing investor Incofin India Progress Fund. The company plans to use the funds to expand its reach, enhance product diversification, and invest in technology enhancements.

Namdev Finvest: Bridging the Credit Gap for MSMEs

Namdev Finvest was founded in 2013 by Jitendra Tanwar, an entrepreneur with over 20 years of experience in the financial sector. The company is an RBI-registered NBFC that offers tailored financial solutions to the underserved segment in rural India, with a primary focus on MSMEs and green finance options. The company offers commercial vehicle loans, car loans, business loans, two-wheeler loans, and gold loans, helping unserved and unreached farmers and entrepreneurs to enrich their lives.

The company claims to have impacted more than 50,000 lives and aims to touch over 100,000 lives by FY25. It also claims to have disbursed over 50,000 loans ranging from Rs 400,000 to 700,000, primarily for income generation, accumulating an impressive asset under management (AUM) exceeding Rs 1,000 crore ($125 million). The company reported revenue of Rs 121.69 crore in FY23, up from Rs 74.91 crore in FY22. The profit of the company also increased to Rs 11.99 crore in FY23, from Rs 10.87 crore in the previous fiscal year.

Namdev Finvest Raises $15 Million to Boost MSME Lending and Green Finance

Namdev Finvest: Pioneering Green Finance in India

Namdev Finvest is also one of the pioneers of green finance in India, offering loans for electric vehicles (EVs) and solar products. The company believes that green finance can not only help reduce carbon emissions and environmental impact, but also create new livelihood opportunities and income streams for its customers. The company has partnered with leading EV and solar manufacturers and distributors to provide affordable and accessible financing solutions for these products.

In October 2022, Namdev Finvest had raised $7.5 million from Symbiotics Investments, which subscribed to a green bond issued by the company. The green bond was certified by Climate Bonds Initiative, an international organization that promotes green investments. The proceeds of the bond were used to finance green loans for EVs and solar products.

Namdev Finvest: Attracting Global Investors

Namdev Finvest has attracted global investors who share its vision of fostering financial inclusion and sustainable development. The latest funding round saw participation from BII, a UK-based development finance institution that invests in businesses that create jobs, boost economic growth, and address social and environmental challenges. BII has invested in several financial services companies in India, such as Aye Finance, Satya MicroCapital, and Northern Arc Capital.

Another new investor in the round was LC Nueva AIF, a fund managed by LC Capital, a Mumbai-based investment firm that focuses on growth-stage companies in the financial services, consumer, and healthcare sectors. LC Nueva AIF has also backed other fintech startups in India, such as BharatPe, Cred, and ZestMoney.

The existing investor in the round was Incofin India Progress Fund, a fund managed by Incofin Investment Management, a Belgium-based impact investment firm that invests in financial inclusion and rural development. Incofin India Progress Fund has invested in several NBFCs and microfinance institutions in India, such as Annapurna Finance, Fusion Microfinance, and Samasta Microfinance.

Namdev Finvest: Scaling Up Its Impact

With the fresh capital infusion, Namdev Finvest aims to scale up its impact and reach more customers in need of financial solutions. The company plans to expand its branch network, launch new products, and leverage technology to improve its operational efficiency and customer experience. The company also intends to strengthen its team, governance, and risk management systems.

“Namdev is playing a significant role in bridging the Rs 25 trillion credit gap in the MSME sector. LC Nueva believes there is great potential in lending to underserved micro-enterprises and is impressed by Namdev’s profitable growth, asset quality, and execution over the last two years. We look forward to partnering with Jitendra and his team as they continue to scale this opportunity,” said Sohil Chand, CIO of LC Nueva AIF.

“With this infusion, we will redouble our efforts to touch 100,000+ lives by FY25. This significant investment reflects the confidence our investors have in Namdev’s mission of fostering financial inclusion,” said Jitendra Tanwar, Managing Director and CEO of Namdev Finvest.


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