Bengaluru-based non-banking financial company (NBFC) Techfino has secured Rs 65 crore in new funding. The round was led by Stellaris Venture Partners and Saison Capital. This investment aims to strengthen the company’s secured lending services for micro, small, and medium enterprises (MSMEs) across India.

Techfino plans to use the funds to grow its presence in tier II and tier III cities. These regions are often underserved by major financial institutions, yet they show strong demand for formal credit access, especially through secured loan products.

Techfino Fresh Funding

With this capital, Techfino will expand its Loan Against Property (LAP) offerings, which help small business owners leverage property assets to secure financing. The company also aims to scale its branch network and improve its technology platform to streamline services and reach more borrowers.

Rajesh Panda, Techfino’s Co-founder, highlighted that out of 640 million MSMEs in India, 390 million are still outside the formal credit system. He added that this segment generates a quarterly credit demand of nearly Rs 2 lakh crore, making it a major opportunity for focused lenders.

Founders with Experience

Techfino was founded in 2019 by banking professionals with deep industry knowledge, Rajesh Panda (ex-Standard Chartered), Jayaprakash Patra (ex-ICICI Bank and ING), and Ratikant Satapathy (ex-Bajaj Finance). The company operates in Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh, and has stayed profitable since its launch.

In addition to secured MSME loans, Techfino also offers education financing through a B2B2C model in partnership with learning service providers.

Technology Plays Key Role

Co-founder Ratikant Satapathy explained that the company’s internal tech stack integrates various APIs to verify borrower information. This allows for quicker processing, better risk assessment, and smoother collections, essential for lending in underserved markets.

Ritesh Banglani from Stellaris Venture Partners praised Techfino for building a profitable business in a challenging segment. He noted that their combination of strong underwriting and full tech integration sets them apart in the financial services space.

Plans to Scale Fast

To date, Techfino has disbursed over 1 lakh loans and has surpassed Rs 200 crore in assets under management (AUM). With the new funding, the company aims to double its branches, grow loan disbursements, and become a major player in secured MSME lending over the next three to five years.