Prayaan Capital raises Rs 110 Cr in Series A round led by Peak XV
- ByStartupStory | February 26, 2026
Prayaan Capital, led by Rangarajan Krishnan (Ranga), former JMD and CEO of publicly listed Five-Star Business Finance, has raised Rs 110 crore in its Series A round led by Peak XV Partners.
The capital will be used to build a lending platform, expand its team, and grow its presence across key MSME markets in India, Prayaan Capital said in a press release.
Rangarajan Krishnan had recently acquired a controlling stake in Prayaan Capital. He aims to transform Prayaan into a new-age MSME lending platform, expanding access to credit for India’s small businesses by combining deep on-ground underwriting expertise with a technology-first approach across sourcing, underwriting, and collections.
The company will focus on serving underserved MSMEs across India, a segment that continues to face an estimated $300 billion credit gap.
According to Prayaan Capital, it seeks to build an institution that combines the proven strengths of branch-led distribution with a technology-enabled operating model. The company aims to leverage digital tools alongside deep customer understanding to improve credit access and serve small businesses more effectively.
Prayaan Capital is a technology-enabled MSME lending platform focused on expanding access to credit for India’s small businesses. The company combines deep underwriting expertise with modern technology to serve underserved entrepreneurs across India.
Over the last 20 years of operations in the region, Peak XV has grown to manage over $10 billion in capital across 16 funds and has invested in over 450 companies. The portfolio has seen over 35 IPOs and several successful M&As to date.
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