InCred’s Vivek Bansal, ex-Kotak executive Sunil Daga raise Rs 475 crore Series A for new NBFC venture

Saarathi Finance, a newly licensed NBFC co-founded by former InCred Group CFO Vivek Bansal and former Kotak Mahindra Bank president Sunil Daga, has raised Rs 475 crore in its maiden Series A equity round from TVS Capital Funds, Lok Capital, Evolvence India, Paragon Partners and a clutch of angel investors.

The capital will be used to offer loans to micro and nano entrepreneurs across semi-urban and rural regions in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh, the company said on May 28.

“We are committed to empowering Bharat’s entrepreneurs by providing more than just credit — a partnership that values and supports their growth,” Saarathi Finance founder and CEO Vivek Bansal said. “This funding milestone enables us to accelerate our mission, ensuring every stakeholder, from entrepreneurs to investors, is valued and cared for in our journey.”

Moneycontrol was the first to write in September 2024 that Bansal and Daga while serving their notice periods at InCred and Kotak, were preparing to launch the NBFC focused on MSME lending.

At the time, the duo had begun discussions to raise Rs 600 crore in equity at a projected valuation of Rs 1,000 crore. The company, registered as Saarathi Finance, has now officially launched with this fundraise and is valued at more than Rs 900 crore.