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Seeds Fincap has secured $8.5 million in Series A funding led by Lok Capital and Matrix Partners India.

The funds will enable Seeds Fincap, a non-banking financial company (NBFC) founded in 2021, to expand its lending capabilities, enhance its technological infrastructure, and broaden its branch footprint, the company said in a statement.

“MSMEs in India continue to be under-served on credit, often overlooked by incumbent financial institutions. At Seeds Fincap, we’ve developed a unique credit evaluation framework supported by a tech-enabled sourcing-to-collections process designed to empower enterprises with tailored financial solutions,” Subhash Acharya, Managing Director and Co-founder, Seeds Fincap Pvt. Ltd said in a statement.

Seeds Fincap specialises in offering secured and unsecured loans ranging from Rs 1-5 lakh, tailored to the needs of MSMEs across sectors like manufacturing and trading. With a network spanning 90 branches across eight states, the Gurugram-based firm has disbursed over Rs 600 crore to more than 50,000 clients.

“MSME credit represents a massive opportunity in India as we scale towards becoming a $10 trillion economy, and is essential to that goal. Our thesis is to invest in high-quality businesses serving this segment with tailored “right-tech”, contextual credit products, especially in underserved geographies like North and Central India,” Vikram Vaidyanathan, Managing Director, Matrix Partners India, said.