Indian Fintech AxiTrust Raises $2.7 Mn Seed Led By General Catalyst
- ByStartupStory | November 27, 2025
Gurugram Startup Builds Digital Surety Bonds To Unlock ₹15 Lakh Cr MSME Liquidity Trap
Gurugram-based fintech startup AxiTrust has secured $2.7 Mn (₹23.5 Cr) in a seed funding round led by global VC powerhouse General Catalyst. The round also attracted participation from Atrium Angels, YAN Network, Supermorpheous, and a syndicate of prominent angel investors. The capital will power the development of comprehensive digital infrastructure to accelerate surety bond adoption across India’s banking, insurance, and government procurement ecosystems.
Revolutionizing Guarantees For MSME Growth
Founded in 2024 by Aditya Tulsian (CEO), Rajeev Chari (COO), and Mukund Daga (CRO), AxiTrust is pioneering AxiTrust Surety – a technology platform that digitizes and streamlines surety bonds as a modern alternative to collateral-heavy bank guarantees. Traditional bank guarantees lock up over ₹15 Lakh Cr of MSME working capital annually, crippling cash flows and limiting business expansion. Surety bonds flip this model by offering insurance-backed guarantees where businesses pay a modest premium instead of tying up capital, freeing liquidity for growth and operations.
The platform handles end-to-end issuance, underwriting, risk assessment, and management of digital surety bonds, partnering with insurers, banks, and procurement platforms. By leveraging AI-driven risk modeling, blockchain for transparency, and regulatory-compliant APIs, AxiTrust creates a scalable “trust layer” that reduces friction in B2B transactions and government tenders. Recent IRDAI regulations and procurement policy amendments have created perfect tailwinds, positioning surety bonds as the next big unlock in India’s financial inclusion story.
Fueling Platform Scale And Ecosystem Partnerships
Proceeds from the seed round will be deployed to enhance platform capabilities, forge strategic alliances with insurers and banks, and drive nationwide onboarding of MSMEs, corporates, and government bodies. Key focus areas include expanding API integrations for embedded surety solutions, building advanced analytics for real-time risk monitoring, and launching sector-specific bond products for construction, infrastructure, and supply chain finance. Tulsian emphasized that this funding marks the foundation of a “new trust architecture” enabling MSMEs to participate confidently in ₹50 Lakh Cr+ annual government procurement opportunities.
AxiTrust’s timing is impeccable amid a fintech resurgence, with homegrown players raising over $1.6 Bn in H1 2025 alone – a 60% jump year-on-year. The lending and guarantees segment remains underserved, where digital-native solutions promise 10x faster processing, 70% lower costs, and broader access compared to legacy systems. By targeting the $200 Bn+ Indian surety market, AxiTrust aims to capture early mover advantage in a space ripe for disruption.
Founder Expertise Meets Market Opportunity
The founding trio brings complementary strengths: Tulsian’s decade in fintech scaling, Chari’s operations mastery from banking giants, and Daga’s risk expertise from insurance majors. Their combined experience addresses core pain points – from manual underwriting delays to collateral inefficiencies – head-on. “For decades, collateral rigidity has choked MSME growth. Surety bonds enable liquidity to flow freely, powering an inclusive economy,” Tulsian noted, highlighting how the platform strengthens trust without straining balance sheets.
General Catalyst’s lead investment underscores conviction in AxiTrust’s mission-critical infrastructure play, similar to its bets on Stripe and Airtable. Co-investors like Atrium Angels and YAN Network add sector-specific networks, accelerating go-to-market in high-volume sectors like real estate and public works. With pilot traction across 500+ MSMEs and insurer partnerships already secured, AxiTrust targets 10x growth in bond issuance volume within 18 months.
Bigger Picture: Fintech’s Surety Moment
This raise arrives as Indian fintechs redefine credit infrastructure, from cashflow lending to embedded insurance. Surety bonds represent the next frontier, potentially unlocking $100 Bn+ in productive capital while slashing systemic risks in procurement chains. Competitors remain fragmented, giving AxiTrust a clear runway to dominate as digital mandates proliferate. As MSMEs contribute 30% to GDP yet face chronic credit gaps, platforms like AxiTrust could catalyze a structural shift, blending technology with policy to fuel India’s $5 Tn economy ambitions.
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