The Indian Wire » Startups » List of top 10 fintech startups focused on SME lending in India

List of top 10 fintech startups focused on SME lending in India

The Indian government is pushing the SME industry in order to help this largely unorganized industry, that employs more than 70 million Indians. As the industry is given a boost, it will need additional funding to scale these small businesses to grow.

While the banks have been inefficient in providing the required loans to facilitate their growth, it has opened up an opportunity for the digital lending industry to serve the growing SME industry in the country.

Here is a comprehensive list of 10 fintech startups focused on SME lending in India:

Vayana Network

Vayana Network is a leading fintech lending startup founded by Ramaswamy Iyer. It enables MSMEs by providing easy and low-cost financing, to help them manage working capital, grow business and create employment. It has partnered with multiple banks and financial institutions to process these loans for enterprises.

Earlier in July 2018, Vayana Network crossed $1 billion in loan disbursal, claiming to become the first trade financing business to achieve the feat, catering to more than 250 supply chains across the country.

Vayana Network last raised $4 million in series A funding round led by Chiratae Ventures, formerly known as IDG Ventures India, and Jungle Ventures, in July 2017.

Capital Float

Capital Float is a Bengaluru-based digital lending startup, founded by Gaurav Hinduja and Sashank Rishyasringa in 2013. It provides a platform to enable SME’s to access quick and flexible capital. It has customized products for different merchants including franchise finance, supply chain finance, term finance, online seller finance, among others.

The startup had last raised ₹48 crores in debt funding from Triodos Investment Management in April 2018. It also raised $22 million in series C round from US-based e-commerce giant Amazon in the same month.

Aye Finance

Aye Finance is a Gurugram-based SME lending startup, founded by Sanjay Sharma and Vikram Jetley in 2014. It provides a platform for small businesses to secure loans at affordable rates, that are locked out of financial institutions. It harnesses technology to create a seamless system to access the creditworthiness of the borrower by using data analytics.

This SME lending startup last raised $10 million in debt funding from Triple Jump and MicroVest Funds in July 2018.


OfBusiness is a Gurugram-based fintech startup founded by Asish Mohapatra, former VC at Matrix Partners, Bhuvan Gupta, ex-vice president of engineering at Snapdeal, along with former McKinsey partner Ruchi Kalra, along with other prominent members in 2015. It provides a technology-driven platform for SMEs to secure loans at nominal rates, along with providing value-added services like raw material procurement to help drive their business.

The startup last raised ₹200 crores in series C funding led by Creation Investments and Falcon Edge, along with participation from Matrix Partners India and Zodius Capital in July 2018.


NeoGrowth is a Mumbai-based NBFC founded by Dhruv Khaitan and Piyush Khaitan in 2010, while the company started commercial operations in 2013. It leverages technology to create customised products and services to fulfil the credit needs of its customers. So far, the company has partnered with more than 7,000 small merchants, to enable the growth of their business.

It last raised ₹300 crores in a funding round led by LeapFrog Investments, along with participation from Aspada and Quona Capital in January 2018.


FlexiLoans is a Mumbai-based financing platform, founded by Abhishek Kothari, Deepak Jain, Manish Lunia, and Ritesh Jain in 2016. It enables SME’s to avail unsecured and flexible loans, who are ineligible for loans through traditional banking channels.

The platform last raised $7 million in debt funding from Financial Institutions in December 2017, to expand proprietary loans and supply chain financing segment.


CoinTribe is a Gurugram-based online lending marketplace, founded by Amit Sachdev, Manish Chaudhari, and Rohit Lohia. It connects small business merchants with banks and other NBFC, to facilitate quick and easy loan approval, along with risk and credit assessment services.

It last raised $10 million in series B funding led by Sabre Partners, along with Puneet Dalmia in May 2018.


SMECorner is a Mumbai-based online lending platform, founded by Samir Bhatia and Sneha Shah in 2014. It provides business loans to micro, small, and medium enterprises, through its technology platform. So far, it has disbursed over 45 crores in loans to more than 700 customers.

It last raised $7 million, in a combination of debt and equity funding from Capital First, along with Accion Venture Lab, in July 2018.

Vistaar Finance

Vistaar Finance is a Bengaluru-based NBFC, founded by Ramakrishna Nishtala in 2012. It provides credit facilities to small businesses in the rural and semi-urban markets in the country. It provides various loans and services including hypothecation and mortgage loans, along with bill discounting services.

The company last raised $37.6 million in an equity funding led by Sequoia Capital India, with participation from Omidyar Network and Elevar Equity in September 2015.

Indifi Technologies

Indifi Technologies is a Gurugram-based digital lending startup, founded by Alok Mittal, Siddharth Mahanot, and Sundeep Sahi in 2015. It brings multiple partners and lenders to bridge the credit gap, helping small businesses access unsecured loans, through its technology platform.

It last raised $10 million in series B round led by Omidyar Network, along with participation from Accel Partners and Elevar Equity in December 2016.


ZipLoan is a New Delhi-based online lending platform, founded by Kshitij Puri and Shalabh Singhal in 2015. It is enabling small business by offering them easy access to unsecured loans, to boost their growth. The platform claims to have empowered more than 1,500 customers in over 10 cities in the country.

It last raised $3 million in series A funding led by Matrix Partners India in October 2017.

With the rise of online users in the country, digital lending platforms have a potential to be the preferred channel for the unsecured SME borrowers. It will not only give the SME industry a much need boost but also build a healthy fintech ecosystem to sustain the future growth of other industries as well.

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