Rural-focused fintech startup SarvaGram has successfully raised Rs 565 crore in its Series D funding round. The new investment was led by Peak XV Partners, with participation from previous investors such as Elevation Capital, Elevar Equity, Temasek, and TVS Capital.
The funding round was split into two parts: the main investment of Rs 550 crore through the issuance of 21,857 Series D preference shares and 20 equity shares, and an earlier infusion of Rs 15 crore. The shares were priced at Rs 2,51,431.22 each, according to filings made with the Registrar of Companies.
Boosts Valuation
Following this funding, SarvaGram’s valuation has doubled, reaching Rs 1,785 crore (around $212 million). This is a major leap from its previous valuation of Rs 790 crore during its $35 million Series C round.
Peak XV Partners led the charge with Rs 340 crore, followed by Elevation Capital with Rs 80.76 crore, Elevar Equity with Rs 68 crore, Temasek with Rs 45.48 crore, and TVS Capital with Rs 30.78 crore. These investments reflect continued trust in SarvaGram’s unique rural financial model.
Focus on Rural Credit
Founded in 2019 by Utpal Isser and Sameer Mishra, SarvaGram provides credit and financial services to rural families. These include business loans, farm loans, home loans, personal loans, and gold loans.
Beyond credit, SarvaGram also supports farm mechanization and insurance through its SarvaMitra network, which spans more than 38,000 villages and supports over 1.5 lakh households. The company also operates more than 170 retail outlets in rural regions.
Investor Stakes and Revenue
With this latest round, Elevar Equity remains the top external stakeholder, holding a 23.78% stake. Peak XV Partners now holds 19.05%, and Elevation Capital owns 18.40%. Co-founders Utpal Isser and Sameer Mishra retain 11% and 7.05% stakes, respectively.
On the financial front, SarvaGram has shown impressive growth. It doubled its operating revenue to Rs 170 crore for the year ending March 2024. The company also managed to cut its losses by 30%, bringing them down to Rs 19.75 crore.
Competes with Agri-Fintechs
SarvaGram faces increasing competition from other rural and agri-fintech companies. Jai Kisan recently raised $50 million, while Arya.ag secured $30 million in debt funding. Despite this, SarvaGram’s strong investor backing and rural presence position it well for future growth.
With over $116 million raised across funding rounds, SarvaGram is steadily building a more accessible and efficient rural credit ecosystem in India.
