If you’ve been watching India’s lending space, here’s a headline you can’t ignore: Techfino just raised ₹65 crore. This isn’t just another funding round; it’s a push into the heart of semi-urban and rural India, where millions of MSMEs still can’t access basic credit. Backed by Stellaris Venture Partners and Saison Capital (the venture wing of Japan’s Credit Saison), the Bengaluru-based NBFC is gearing up to double its physical branches, hire aggressively, and upgrade its risk-tech stack.
Techfino isn’t your typical city-slicker fintech. It’s built on the backs of small-town entrepreneurs, dairy farmers, and kirana owners, serving up Loan Against Property (LAP) products in markets where traditional banks rarely tread. With a current monthly disbursement of over ₹10 crore and a ₹200 crore+ AUM, the new Techfino ₹65 crore funding will help them scale fast. Their goal? Double the disbursal rate and reach twice as many borrowers within a year.
Founded in 2019 by three banking insiders—Rajesh Panda, Jayaprakash Patra, and Ratikant Satapathy—Techfino marries street-level know-how with serious fintech chops. Their tech platform isn’t off-the-shelf. It’s homegrown, smart, and geared for Bharat. In a landscape flooded with urban-focused lending apps, Techfino’s boots-on-the-ground model is shaking up how credit flows to the grassroots.
This fundraiser isn’t just capital—it’s a statement: the future of financial inclusion is local, data-driven, and fiercely personal. And Techfino wants to be the one holding the pen.
1. The Journey Behind Techfino’s Latest Milestone
1.1 Inception and Vision
The idea behind Techfino didn’t come from a boardroom—it came from the ground. In 2019, three seasoned bankers saw something broken. Credit just wasn’t reaching India’s real economy—the shopkeepers, village traders, and small-town entrepreneurs keeping the engine running. Rajesh Panda (ex-Standard Chartered), Jayaprakash Patra (ex-ICICI, ING), and Ratikant Satapathy (ex-Bajaj Finance) set out to change that.
1.2 Dual Lending Model
The company isn’t betting on just one horse. It runs two business lines that feed into each other and diversify risk.
1.2.1 MSME Lending
This is where Techfino is making its biggest impact. By offering secured LAPs (Loans Against Property), they target businesses in Tier II and III cities—places often ignored by big banks. From grocery store owners to dairy operators, their average loan size falls between ₹8 lakh and ₹12 lakh. It’s not small change, and it makes a real difference.
1.2.2 Education Loans
Techfino’s other vertical runs on a B2B2C model. They partner with over 100 educational institutions—think Manipal, Amity—to offer student loans. It’s stable, scalable, and complements the seasonal nature of MSME lending.
1.3 Revenue and Profitability
While most early-stage NBFCs burn cash, Techfino has flipped the script. They’ve been profitable since their first full operational year. FY25 closed with ₹34 crore in revenue and ₹1.5 crore in pre-tax profit. With 400 employees already on board and plans to hit 600 soon, they’re scaling up without losing financial discipline.
2. Details of the Techfino ₹65 Crore Funding Round
2.1 Investors Behind the Capital
Stellaris Venture Partners and Saison Capital didn’t just write checks—they backed a vision. Saison Capital is the venture investment arm of Credit Saison, a major player listed in Tokyo. Their faith in Techfino reflects a belief in Bharat-focused fintech models.
2.2 Planned Utilisation
So what’s the plan for Techfino ₹65 crore? They aren’t splurging. Every rupee has a role.
2.2.1 Branch Network Expansion
The goal is clear: double the footprint. From 30 branches today, they’re racing toward 60 in the next 12 months. Not in metro hubs, but in business-rich but credit-poor districts across India.
2.2.2 Technology Enhancement
Techfino’s tech isn’t just a platform—it’s the engine. With multiple APIs syncing property verification, banking records, and legal checks, the goal now is to push it further. Think faster approvals, tighter risk filters, and better fraud detection.
2.2.3 Team Expansion
Scaling branches and tech needs people. Techfino will ramp up hiring across credit underwriting, tech, and sales—bringing in local talent that understands the regions they serve.
2.3 Funding Impact on Disbursement Capacity
Right now, Techfino pushes out ₹10 crore in secured MSME loans each month. With this raise, they plan to hit ₹20 crore/month. That’s a 100% jump—without cutting corners.
3. Tackling India’s MSME Credit Gap
3.1 Unmet Demand
Here’s a number to chew on: Of India’s 640 million registered MSMEs, 390 million are flying under the radar—completely outside formal credit systems. Their quarterly demand? ₹200,000 crore. That’s the vacuum Techfino is targeting.
3.2 Techfino’s Solution
Traditional underwriting doesn’t work here. Techfino gets that. They look at household income—maybe one family member runs a store, another works part-time. They build region-specific scorecards, adjusting for local realities.
3.3 Proprietary Risk Engine
Their secret sauce? A full-stack risk engine built in-house. From parsing bank statements to verifying property docs and legal records, their API-based system cuts down TAT (turnaround time) and boosts accuracy. No vendor dependencies. Just clean, fast decision-making.
4. Competitive Landscape and Market Trends
4.1 Direct Competitors
Techfino isn’t alone. Aye Finance, Lendingkart, Kinara Capital—they’re all chasing the same MSME goldmine. But what sets Techfino apart is its dual focus (MSME + Education), and a branch-led model that builds real trust.
4.2 Indirect Competition
Big NBFCs and banks like ICICI or HDFC? They have the products, but not the feet-on-the-ground presence in smaller towns. Techfino fills that gap with local know-how and sharp execution.
4.3 Industry Trends
India’s fintech scene is exploding—expected to hit $150 billion by 2025. MSME credit, especially backed by GST data and UPI penetration, is the fuel. It’s not hype; it’s structural change.
5. Strategic Goals for the Next Five Years
5.1 AUM Growth
From ₹200 crore now, Techfino wants to cross ₹500 crore in AUM. The driver? Secured LAP lending. They know their borrower. They know the terrain.
5.2 Expansion Plans
New states are on the radar. But they’re not rushing. The focus is deep, not wide—saturate existing geographies before hopping borders. Education loan partnerships will also grow, but in step with credit demand.
5.3 Automation and Data Analytics
The next frontier? Machine learning. AI-driven models to enhance underwriting, flag anomalies, and predict defaults. It’s not just fancy tech—it’s a survival toolkit in rural finance.
6. Founders’ Vision and Investor Confidence
6.1 Founders’ Perspective
Rajesh Panda is blunt: “We weren’t chasing valuations. We were solving a problem.” Satapathy adds: “You can’t copy-paste urban fintech into rural India. We had to build from scratch.” Their DNA is execution-driven.
6.2 Investors’ Take
Ritesh Banglani from Stellaris says it best: “Techfino is proof that you can be profitable, data-smart, and grounded—all at once.” Their hybrid model—part tech, part touch—is built for India, not Silicon Valley.
Learning for Startups and Entrepreneurs
The Techfino playbook is a goldmine for founders:
- Fix what’s broken: Find the gap no one else is looking at.
- Tech is a tool, not the answer: Human context matters, especially in credit.
- Profitability beats hype: It’s sexy to scale fast, but staying in the black is what wins.
- Own your stack: Proprietary platforms give you speed and control.
- Listen to the field: Your borrowers aren’t data points—they’re stories. Know them.
The Startups News
At TheStartupsNews.com, we don’t chase shiny unicorns—we tell the stories that matter. Techfino’s journey is one such story. From branch-led lending to building a rural-first tech engine, they’re proving that fintech doesn’t have to be urban, flashy, or overhyped. If you’re tracking the next wave of India’s financial evolution, stay locked in here. Because this is where the real startup action is.
