Funding · Financial Services

Finodaya Capital raises $2.5 million seed funding

What they do

Finodaya Capital lends to micro and nano enterprises in underserved Indian markets

It raised approximately $2.5 million in seed funding to expand its operations

The company uses a high-tech high-touch model combining digital tools with personal engagement

Finodaya Capital raised approximately $2.5 million in seed funding.
The company lends to micro and nano enterprises in underserved Indian markets.
It uses a high-tech high-touch model that combines digital tools with personal engagement.
The name Finodaya combines Fin (finance) and Udaya (rising sun), reflecting aspirations from India's hinterlands.
Its internal manifesto is called Hamara Sankalp, emphasising customer-first, honesty, accountability, respect and learning.
The company evaluates financial capability and behavioural intent, focusing on productive loan use.

An estimated 85% of small enterprise financial needs are met through informal channels.
Small businesses lack formal documentation and do not fit traditional banking models.
The company aims to become a long-lasting financial conglomerate contributing to India's economic growth.

Finodaya Capital provides business expansion loans to micro and nano enterprises.
It has established 15 branches across underserved Indian markets.
The company has disbursed nearly ₹25 crore in loans.
Its model is high-tech high-touch, using digital tools alongside personal engagement.
The company focuses on customers who lack formal documentation and are ignored by traditional banks.

The company aims to become a long-lasting financial conglomerate contributing to India's economic growth.
It faces challenges in team building in tier-3/4 markets, capital raising, debt management and sourcing right customers.

Product: Secured microloans against property for small businesses and micro enterprises
Customers: Micro and nano enterprises across India requiring credit access
How it makes money: Phygital model combining digital tools with physical branch presence for credit underwriting and disbursal
What sets it apart: High touch high tech approach offering customized secured lending solutions using data analytics and transparency
Operations: Physical branch network in Madhya Pradesh with plans for 15 branches across six months