GrowXCD Finance has successfully raised INR 50 crore ($6 million) in a Series A funding round, with Lok Capital leading the investment charge. The initial tranche of INR 30 crore has been closed, marking a crucial milestone for the Chennai-based startup founded in 2022 by Muralidharan.
The substantial funding injection comes as GrowXCD Finance aims to revolutionize financial access for micro, small, and medium enterprises (MSMEs), with a particular focus on regions outside urban centers. The fintech startup, holding a non-banking financial company license from the Reserve Bank of India since April, currently operates ten branches across Tamil Nadu, with its flagship branch located in Thiruvannamalai.
GrowXCD Finance envisions utilizing the freshly acquired capital to assemble a robust team, drive technological advancements, and execute an ambitious expansion plan over the next 12 to 18 months. The company’s mission is rooted in leveraging technology to address the credit gap prevalent in tier-2 and tier-3 cities, unlocking new avenues for economic growth and empowerment.
Lok Capital, a seasoned investor with a diverse portfolio spanning financial services, agri-tech, health-tech, and climate-tech, has taken the lead in this funding round. Notable investments by Lok Capital include Fincap, MoneyView, Aquaconnect, and SuperBottoms, reflecting the firm’s strategic commitment to transformative ventures driving positive change.
The infusion of funds from Lok Capital positions GrowXCD Finance strategically to navigate its next phase of growth. By marrying localized insights with cutting-edge technology, the fintech startup aims to create a scalable model that addresses the unique challenges faced by businesses in specific regions. The Series A funding not only validates GrowXCD Finance’s business model but also underscores investor confidence in its leadership and vision for inclusive financial growth.
As GrowXCD Finance sets its sights on reshaping the financial services landscape for underserved MSMEs, the Series A funding serves as a testament to the fintech sector’s growing emphasis on inclusivity beyond metropolitan areas. With Lok Capital’s support, GrowXCD Finance is poised to become a trailblazer in driving financial inclusion, ushering in a future where businesses and individuals in tier-2 and tier-3 cities have unfettered access to tailored financial solutions.
The closure of the Series A funding heralds a new chapter for GrowXCD Finance, marking its ascent as a key player in the fintech space with the potential to bring about meaningful change in the financial landscape for businesses across diverse geographical landscapes.
