Pune-based SarvaGram, a digital lending company with an emphasis on rural areas, has raised Rs 565 crore, or around $68.07 million, in a Series D equity fundraising round headed by Peak XV Partners.

The round was also attended by current shareholders TVS Capital, Temasek, Elevar Equity, and Elevation Capital. Avendus Capital was an exclusive financial adviser for the deal.

By January 2023, the fintech had nearly doubled its valuation and was in negotiations to raise at least $50 million in stock from current investors, valued between $170 and $200 million.

After this round, SarvaGram has raised a total of Rs 950 crore in capital.

Utpal Isser, Co-Founder and CEO of SarvaGram, said, “The fundraise will boost our mission of putting more power in the hands of rural households by enhancing their access and ease them into a curated set of financial and productivity-enhancing solutions.”

The distinctive selling proposition of SarvaGram, which was founded in 2018 by Isser and Sameer Mishra, is its emphasis on the underserved and expanding market of aspirational semi-urban and rural households who fall into the category of “underbanked but creditworthy.”

In order to provide a variety of credit, such as gold, housing, personal, farm, and consumer durable loans, it divides its clientele into three groups: salaried, farm, and micro, small, and medium-sized businesses (MSMEs).

In contrast to conventional underwriting methods that evaluate a borrower’s income or ability to make payments before approving a loan, it uses a household-centric lending model that views the entire household as a single economic entity.

According to the firm, rural India is rapidly changing, with household demands rising at an accelerated rate.  The majority of these households have more than one source of income; hence, they cannot be categorised into a single occupation.

IDFC First, AU Small Finance Bank, Caspian Debt, and Vivitri are among the partner lenders to whom SarvaGram Fincare issues the loans.

Additionally, it offers rural clients insurance and farm mechanisation (pay-per-usage) solutions.

SarvaGram has 150 locations throughout Gujarat, Maharashtra, Karnataka, and Rajasthan. Throughout the current fiscal year, the company intends to expand into new states and bolster its presence in already-existing ones.

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