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kaleidofin, a financial services company that caters to small and growing businesses in the informal sector, said it raised $13.8 million in a fresh funding round.

The round was led by Rabo Partnerships B.V., which invested $11 million, with existing investors Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India, and Flourish contributing the rest.

So far, kaleidofin has raised $37 million in total funding.

The startup will use the investment to scale its lending portfolio and expand credit scoring, middleware, and risk services via partnerships.

Founded in 2017 by Puneet Gupta and Sucharita Mukherjee, kaleidofin aims to democratise access to financial services for low-income individuals and micro-entrepreneurs who often struggle to obtain traditional banking support.

“We believe that Kaleidofin’s understanding of the Indian rural economy, where 61% of individuals are directly or indirectly dependent on agriculture, and Rabo Partnerships’ focus on the agri sector will further strengthen our capabilities in serving the customer, underwriting the customer, and in offering customers and small businesses more suitable loans in the agri segment,” Sucharita Mukherjee, Co-founder and CEO of kaleidofin, said.

Rabo Partnerships, a wholly-owned subsidiary of the Netherlands-based Rabobank Group, works to improve access to financial services for underserved populations and provides technical assistance to local financial institutions and co-operatives to help them develop capabilities that enhance their service offerings.

“They (kaleidofin) have established themselves in India as a leading player in credit scoring and risk services, predominantly targeting women, small entrepreneurs, and the agricultural segment. This investment seamlessly supports our strategy of promoting data-driven finance solutions through local institutions and service providers,” Marianne Schoemaker, CEO of Rabo Partnerships, said.