Sarvagram, a Mumbai-based digital lending firm focused on rural households, is in advanced discussions to secure nearly $50 million in funding from both new and existing investors. The company’s valuation is projected to reach between $170 million and $200 million, nearly doubling since its last funding round in January 2023.
Key investors in this round include Peak XV, Apis Partners, Beams Fintech Fund, and Creation Investments Capital Management LLC. The funding is expected to comprise a mix of primary and secondary transactions, with existing investors such as Elevar Equity, Elevation Capital, Temasek, and TVS Shriram Growth Capital also participating.
Sarvagram operates through a franchisee model, with local franchisees known as Sarvamitras facilitating access to credit and non-credit products. The company runs 125 branches across Gujarat, Maharashtra, Karnataka, and Rajasthan, and plans to expand further into new states while deepening its presence in existing ones.
Founded in 2018 by Utpal Isser and Sameer Mishra, Sarvagram targets aspirational semi-urban and rural households, offering a variety of loans including gold, housing, personal, farm, and consumer durable loans. The firm uses a household-centric lending model, which assesses the economic potential of entire households rather than individual income.
Sarvagram Fincare Private Limited (SFPL), the company’s non-banking finance arm, has recently achieved profitability with a reported profit after tax of ₹7.6 crore for FY24. Meanwhile, Sarvagram Solutions Private Limited (SSPL), another group entity, has reduced its net loss by 65% to ₹11.6 crore for the same fiscal year, with assets under management growing 1.5 times to ₹1,166 crore.