Navadhan Raised ₹111 Cr to Fund Rural MSME Loans

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Navadhan, a rural India-focused fintech startup, has successfully raised ₹111 Cr ($12.8 Mn) in its Series A funding round. The round, which was initially set at ₹80 Cr, was oversubscribed due to strong investor interest. The funding was led by NABARD’s venture capital arm, NabVentures, with Prime Ventures co-leading. Other participants included LNB Group, Varanium NexGen Fintech Fund, Gemba Capital, Faad, VC-Grid, and Anicut.

Navadhan plans to utilize the fresh capital to expand its operations, enhance its proprietary tech platform, AceN, and diversify its loan offerings for micro, small, and medium enterprises (MSMEs) in rural India. Furthermore, the fintech company, founded in 2019 by Nitin Agrawal, Vijay Haswani, Anirudh Ramakuru, and Amit Biswal, focuses on providing digital financial solutions for small businesses and microenterprises.

AceN, Navadhan’s flagship platform, offers seamless financial services, including customer sourcing, underwriting, and collections, leveraging AI-driven data analysis. The startup has secured over ₹700 Cr in debt lines from more than 25 banks and NBFCs and operates across 700 PIN codes in five Indian states. The company envisions transforming access to financial services for rural entrepreneurs and MSMEs by bridging the gap between formal banking institutions and small businesses.

With a strategic approach towards financial inclusion, Navadhan has demonstrated a 12X growth over the last three years while maintaining strong asset quality. The latest funding round further solidifies its position in India’s rural fintech landscape and marks a step towards scaling operations, enhancing technology, and increasing financial accessibility for rural enterprises.

1. Navadhan’s Business Model and Revenue Generation

1.1 Navadhan functions as a rural fintech non-banking financial company (NBFC), primarily focusing on offering credit solutions to small businesses and microenterprises in semi-urban and rural areas. Moreover, the company leverages technology through its AceN platform, ensuring a seamless digital process for loan origination, underwriting, servicing, and collections

1.2 The revenue model of Navadhan is structured around interest income from loans, partnerships with banks and NBFCs, and service fees from financial transactions facilitated through the AceN platform. By integrating API-based co-lending mechanisms, Navadhan enables faster and more efficient credit disbursal, making it an attractive partner for financial institutions.

2. Founders and Their Background

2.1 Navadhan was founded in 2019 by financial industry veterans Nitin Agrawal, Vijay Haswani, Anirudh Ramakuru, and Amit Biswal. Each founder brings 15-25 years of experience in financial services, banking, credit risk assessment, and technology-driven lending solutions.

2.2 Their combined expertise has enabled Navadhan to design and implement a fintech platform that specifically caters to MSMEs, addressing challenges such as lack of income proof, limited banking history, and the need for alternative credit assessment methodologies.

3. Navadhan’s Tech-Driven Financial Services

3.1 The AceN platform serves as a comprehensive digital lending ecosystem, providing paperless customer onboarding, automated underwriting, multi-channel collections, and AI-driven credit risk analysis.

3.2 Through proprietary data science-backed underwriting models, Navadhan evaluates borrower creditworthiness using alternative data sources, such as transaction history and digital footprint analysis.

4. Growth and Expansion Plans

4.1 Navadhan currently operates across 700 PIN codes in five states: Madhya Pradesh, Rajasthan, Gujarat, Karnataka, and Odisha. The startup aims to deepen its presence in these geographies while expanding into new regions.

4.2 The company plans to diversify its loan offerings to include working capital loans, microbusiness financing, and co-lending solutions for priority sector lending.

5. Industry Context and Investor Confidence

5.1 The Indian fintech sector has consistently attracted substantial investment, with startups securing over $2.5 billion in 2024. Moreover, this trend has continued in 2025 as Navadhan raised ₹111 Cr ($12.8 Mn) in Series A , further highlighting investors’ strong confidence in digital financial services.

5.2 Navadhan’s 12X growth in the last three years, combined with strong asset quality, has made it a preferred choice for investors like NabVentures, Prime Ventures, and LNB Group.

6. Learning for Startups and Entrepreneurs

6.1 Tech-Driven Solutions for Niche Markets: Navadhan’s success underscores the importance of leveraging technology to address specific market gaps, particularly in underserved regions.

6.2 Strategic Investor Partnerships: Raising capital from investors aligned with a startup’s vision ensures long-term sustainability and sectoral expertise.

6.3 Financial Inclusion as a Growth Driver: Catering to MSMEs and rural entrepreneurs can unlock significant market potential while contributing to economic development.

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