In the pulsating heart of India’s fintech ecosystem, where innovation clashes with regulatory scrutiny, a new funding saga is unfolding. Finnable, the Bengaluru-based digital lending platform that’s been quietly revolutionizing credit access for underserved borrowers, is on the cusp of securing a whopping Rs 250 crore in a fresh funding round. This infusion, led by heavyweights like TVS Shriram Growth Fund and backed by Ranjan Pai’s MEMG Family Office, isn’t just another cheque in the startup ledger—it’s a resounding vote of confidence in the sector’s resilience amid economic headwinds.
As of September 2025, whispers from regulatory filings and insider circles paint a picture of strategic ambition. Finnable’s board recently greenlit a special resolution to issue over 92,000 preference shares at a premium price, signaling the early stages of this multi-stage round. While the initial tranche clocks in at Rs 30.55 crore, sources close to the matter confirm the overall target is a robust Rs 250 crore. This comes hot on the heels of Finnable’s FY23 performance, where revenues soared past Rs 100 crore, even as losses lingered at Rs 19.51 crore—a testament to the high-octane growth playbook of fintech disruptors.
Finnable isn’t your run-of-the-mill lender. Founded in 2019 by a trio of finance veterans—Rohit Bhardwaj, Hardik Tibdewal, and Siddharth Maheshwari—the platform leverages cutting-edge machine learning algorithms to assess creditworthiness for gig workers, small traders, and MSMEs who often fall through the cracks of traditional banking. Picture this: a street vendor in Mumbai’s bustling Crawford Market, armed with just a smartphone and a few months of UPI transaction history, unlocking a Rs 50,000 loan in under 10 minutes. That’s Finnable’s magic—democratizing finance one algorithm at a time. With over 5 lakh users onboarded and disbursals crossing Rs 1,500 crore, the company has carved a niche in the “thin-file” credit space, where conventional scores like CIBIL fall short.
This funding round couldn’t be timelier. India’s digital lending market is exploding, projected to hit $1.3 trillion by 2030, according to a recent Boston Consulting Group report. Yet, it’s a battlefield scarred by defaults, RBI clampdowns, and the ghost of the 2022 lending crisis that felled players like Paytm’s lending arm. Finnable, however, has navigated these waters with agility. Post the initial Rs 30.55 crore bridge, the full Rs 250 crore will fuel tech upgrades, AI-driven risk models, and geographic expansion into Tier-2 and Tier-3 cities. “We’re not just raising capital; we’re building a fortress against volatility,” quipped an executive, speaking off the record.
Leading the charge is TVS Shriram Growth Fund, the venture arm of the storied TVS Group, known for its bets on scalable B2C plays. They’re ponying up Rs 19.40 crore in the first leg, eyeing a deeper stake in Finnable’s post-money valuation, pegged at Rs 866 crore ($104 million). Joining them is Malpani Retails Private Limited, injecting Rs 4.70 crore, alongside angel heavyweights like Harsh Anand Jain and Neha Bagaria, who together cover the remaining Rs 6.45 crore. But the real firepower? Ranjan Pai’s MEMG, the family office of the Manipal empire’s patriarch. Pai, a serial investor with a nose for healthcare and fintech crossovers, sees Finnable as a bridge to his broader portfolio, including diagnostics giant Metropolis Healthcare.
Ranjan Pai’s involvement adds layers of intrigue. The good doctor-turned-entrepreneur has a track record of turning underdogs into unicorns—recall his early stake in Swiggy or the transformative push at ManipalCigna. For Finnable, MEMG’s entry means more than money; it’s access to Pai’s vast network for partnerships in health-linked micro-loans, perhaps even tying into wellness financing. “In a country where 80% of the workforce is informal, platforms like Finnable are the unsung heroes of financial inclusion,” Pai reportedly told associates during a recent investor huddle in Mumbai.
Delving deeper, this round underscores a shifting tide in Indian VC. Post-2023’s funding winter, where deal volumes plummeted 40%, 2025 has seen a thaw, with fintechs leading the rebound. Comparable raises—like Rapido’s Rs 250 crore from Prosus or Celcius Logistics’ similar haul—signal investor appetite for proven traction over moonshot promises. Finnable’s edge? A laser-focused product-market fit. Their app boasts a 4.8-star rating on Google Play, with users raving about seamless disbursals and flexible EMIs. But it’s the backend wizardry that shines: proprietary credit scoring that factors in alternative data like telecom bills and e-commerce spends, slashing NPAs to under 3%—a envy-inducing metric in an industry averaging 5-7%.
Of course, no fintech fairy tale is without thorns. Critics point to Finnable’s FY23 losses as a red flag, questioning scalability in a high-interest regime where RBI’s repo rate hovers at 6.5%. Regulatory overhang looms large too—the central bank’s 2022 guidelines curbed algorithmic lending excesses, forcing platforms to recalibrate. Finnable responded by bulking up compliance teams and partnering with NBFC-MFIs for last-mile delivery. “Losses are the tuition fees of growth,” counters Rohit Bhardwaj, Finnable’s CEO, in a recent interview with this correspondent. “With this capital, we’re doubling down on profitability by FY26.”
Zooming out, Finnable’s story mirrors India’s broader economic narrative. As the nation races towards a $5 trillion GDP milestone, MSME credit gaps yawn at Rs 30 lakh crore, per IFC estimates. Digital lenders like Finnable are plugging these holes, empowering 63 million micro-enterprises that drive 30% of GDP. This raise isn’t isolated; it’s part of a virtuous cycle. Fresh funds mean more hires—Finnable plans to add 200 heads in data science and ops—spurring job creation in Bengaluru’s Silicon Valley. It also bolsters India’s startup ecosystem, where foreign VCs like Sequoia have dialed back, ceding ground to homegrown titans like TVS and MEMG.
Investor sentiment echoes this optimism. “Finnable’s blend of tech and empathy positions it for explosive growth,” says a TVS Shriram portfolio manager. “In a post-pandemic world, where gig economy workers need agile finance, they’re the disruptors we bet on.” Indeed, the platform’s pivot to embedded finance—integrating loans into e-commerce checkouts—could unlock Rs 500 crore in additional disbursals by 2026.
Yet, for all its promise, a cautionary note: India’s lending boom risks overheating if unchecked. Rising delinquencies in unsecured loans (up 20% YoY, per TransUnion CIBIL) could trigger another RBI crackdown. Finnable must tread carefully, balancing innovation with prudence.
As the ink dries on this Rs 250 crore pact, Finnable stands taller, a beacon for fintech aspirants. In an era where capital is king, this raise isn’t just fuel—it’s rocket propellant, hurtling the platform towards unicorn status and beyond. For borrowers from Kolkata’s alleys to Coimbatore’s workshops, it’s a win: cheaper credit, faster dreams. India’s financial revolution? It’s just getting Finnable.
About The Author
