Non-Banking Finance Company (NBFC) Namdev Finvest Private Limited (Namdev) has raised $19 million in its Pre-Series C funding round.
The investment round was led by Maj Invest Financial Inclusion Fund III K/S, with participation from Promoters Group and Employees.
Founded in 2013, Jaipur-based Namdev facilitates tailored financial solutions to the underserved segment in rural India, with a primary focus on MSMEs and Green Finance options. It focuses on delivering financial solutions to underserved populations with low formal incomes and limited credit history.
Reacting on the funding Jitendra Tanwar, managing director and CEO of Namdev, said, "This significant investment reflects the confidence our investors have in Namdev's mission of fostering financial inclusion. This round of funding will help us to extend our reach into newly expanded rural geographies."
The company said it has achieved remarkable operational and financial achievements, spanning its footprint across seven states and cultivating a robust portfolio exceeding Rs 1,120 crore ($140 million), supported by stable financials.
Aditya Bhandari, partner and regional director, Asia at Incofin Investment Management, highlighted, “Due to its secured nature of loan portfolio, deep impact thesis and professional management team, Namdev continues to attract significant private equity interest. We have a strong working relationship with Maj Invest and firmly trust their potential contribution in the growth journey of Namdev.”
Namdev employs a touch and technology (Phygital) loan approval and disbursal system. With a robust track record, Namdev has disbursed over 50,000 loans ranging from Rs 400,000 to 700,000 primarily for income generation, accumulating an AUM exceeding Rs 1,120 crore.
The government aims for MSMEs to contribute $2 trillion toward the target of achieving a $5 trillion economy by 2024. In August 2021, the MSME Ministry announced a goal to increase MSMEs' contribution to GDP to 50 per cent by 2025.
India has around 6.3 crore MSMEs, with the number of registered MSMEs reaching 80.16 lakh units as of March 31, 2022. This indicates that 88 per cent of enterprises still operate in the informal sector.
