GrowXCD Finance Raises INR 50 Crore in Series A Funding Led by Lok Capital

• ByStartupStory     |    November 27, 2023

Fintech startup GrowXCD Finance has successfully raised INR 50 crore ($6 million) in its Series A funding round, spearheaded by Lok Capital. The funding infusion is earmarked for team expansion, technological innovations, and bolstering its presence over the next 12 to 18 months, as per Entrackr’s report.

Established in 2022 by Arjun Muralidharan and Sathishkumar Vijayan, Chennai-based GrowXCD aspires to construct credit infrastructure for MSMEs and low-income households. It aims to streamline institutional capital flow into retail assets secured by mortgages, having secured a non-banking financial company (NBFC) license from the Reserve Bank of India. 

Presently, it operates via six branches in Tamil Nadu, offering two primary products—GrowShubam and GrowVyapaar, targeting households and MSMEs, respectively.

Lok Capital, established in 2004 by Donald Peck, Rajiv B. Lall, Venky Natarajan, and Vishal Mehta, is an impact investor with a portfolio that includes startups such as Affordplan, Equitas, Mintify, and RenewBuy. Their recent investment signifies GrowXCD’s strategic focus on leveraging technology to broaden financial access across Tier-I and Tier-II cities.

The funding round emerges amidst a thriving Indian fintech landscape. The Indian fintech market is projected to expand to approximately $2.1 trillion by 2030, experiencing an 18% CAGR, according to Inc42’s State Of Indian Fintech Report, Q3 2023.

This development aligns with other recent funding activities in the fintech sector. Kiwi, a fintech startup, secured $13 million in its Series A round led by Omidyar Network India, aiming to scale up ‘credit cards on UPI’ offerings nationwide. Additionally, Slice, another fintech startup, acquired INR 75 crore (approximately $9 million) in debt funding from Stride Ventures to advance technological solutions and promote financial inclusion at grassroots levels.

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