Namdev Finvest Secures $19 Million Funding Round Led by Maj Invest

• ByStartupStory     |    April 2, 2024

Namdev Finvest, a non-banking financial company (NBFC) focusing on Micro, Small, and Medium Enterprises (MSMEs), has successfully closed a pre-Series C funding round raising $19 million. The funding was spearheaded by Maj Invest Financial Inclusion Fund III K/S, a prominent private equity investor, with participation from the promoters group and employees. The announcement was made by Namdev Finvest on Monday.

The funding infusion is earmarked to fuel Namdev Finvest’s expansion efforts, particularly into newly expanded rural geographies. Jitendra Tanwar, the Managing Director & CEO of Namdev, expressed optimism about the funding, highlighting its role in extending their reach and impact in underserved areas.

Established in 2013 by Tanwar, Namdev Finvest operates across seven North-Western states, with a primary focus on catering to the underserved population with low formal income and limited credit history in rural and semi-urban areas. The company’s portfolio includes tailored business loans for MSMEs and green finance options such as e-mobility and solar loans.

With a network of over 100 branches, Namdev Finvest has disbursed over 50,000 loans ranging from Rs 4 lakh to Rs 7 lakh, primarily for income generation purposes, accumulating an impressive Assets Under Management (AUM) exceeding Rs 1,120 crore.

Siva Vadivelazhagan, Director at Maj Invest Financial Inclusion, expressed eagerness to support Namdev Finvest’s successful track record, emphasizing their tech-driven underwriting and cost-effective liability model.

Maj Invest, a Danish asset management company with approximately $12 billion under management, leads the funding round. Namdev Finvest also boasts collaborations with over 44 lenders, including public, private, and small finance banks, international financial institutions, and domestic financial institutions.

The expansion efforts of companies like Namdev Finvest come at a time when there’s a notable shift in MSME dynamics. According to the February 2024 TransUnion-CIBIL MSME Pulse report, 46 percent of MSME originations in the July-September 2023 quarter were from semi-urban and rural regions. This growth is further fueled by improvements in the credit profiles of MSMEs, with a reduction in high-risk profiles.

Additionally, data shared by Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry, indicates a decline in gross NPAs in the MSME sector, underscoring the sector’s resilience and potential for further growth.

Namdev Finvest’s latest funding round signifies not only investor confidence in the company’s vision but also the growing opportunities and importance of financial inclusion in India’s MSME sector.

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