Saarathi Finance and Credit Pvt. Ltd.

Saarathi Finance and Credit Pvt. Ltd. is an Indian company that specializes in providing essential financial solutions aimed primarily at Micro, Small, and Medium Enterprises (MSMEs), helping them bridge significant credit gaps in their operations. Founded in 2024, Saarathi Finance and Credit Pvt.

Ltd. , headquartered in Mumbai, India, offers financial services targeting MSMEs. Since its inception, the company has engaged in one deal, recently raising INR 4. 75 billion in a Series A funding round on May 28, 2025.

The investment was led by TVS Capital Funds, Lok Capital, Evolvence Equity Partners, and Paragon Partners, bringing the total funds raised to INR 4. 75 billion and resulting in a current company valuation of INR 90 billion. Saarathi Finance and Credit Pvt. Ltd.

specializes in providing financial solutions primarily for Micro, Small, and Medium Enterprises (MSMEs) in India. Their main offerings include small business loans and mortgage loans, designed to address the substantial credit gap faced by MSMEs in the country. The core product, small business loans, aims to support entrepreneurs in overcoming financial constraints, facilitating access to necessary capital for growth and operational needs. With a customer-centric approach, Saarathi offers tailored financial products that not only deliver funds but also include advisory services to enhance the overall financial literacy of their clients.

The company focuses on the Indian market, engaging with a diverse clientele that includes millions of MSMEs across various sectors, ensuring they have the financial support needed to thrive in an increasingly competitive landscape. Saarathi Finance generates revenue primarily through its lending services, which involve direct transactions with MSME clients seeking financial assistance. The company employs a straightforward transaction structure where clients apply for loans, and upon approval, they receive funds that cater to their specific business needs. Revenue is derived from interest payments on the loans, structured around competitive rates reflective of the market and client risk profiles.

In this transactional framework, clients typically pay back the principal amount along with interest over a predefined repayment period. The focus on small business and mortgage loans positions Saarathi as a critical player in the financial ecosystem for MSMEs, and their revenue model is aligned with facilitating growth and fostering long-term relationships with their client base. In May 2025, Saarathi Finance and Credit Pvt. Ltd.

raised INR 4. 75 billion in Series A funding to enhance credit access for MSMEs in semi-urban and rural areas across India. The company is focused on developing new products designed to further assist these enterprises with their financial needs. With the recent influx of funds, Saarathi plans to expand its services into new geographic regions, specifically targeting underserved markets in rural and semi-urban India.