Funding · 21 October 2026Vegafin₹1,000 CrAI-first MSME lending
Vegafin gets ₹1,000 Cr to build MSME lender
By Abha Lohia ·
- Vegafin is a new lending platform for small businesses, promoted by a former ICICI Bank executive, using AI to judge credit risk
- Premji Invest, Norwest and Lok Capital committed ₹1,000 crore, and the firm will first buy a majority stake in lender Bizloan
- Bizloan has over 35 branches in five states and manages assets above ₹235 crore, giving Vegafin a ready distribution base
What happened
- Vegafin received ₹1,000 crore from three investors.
- It will buy a majority stake in Bizloan, a Gurugram-based NBFC.
- The platform targets MSME lending with AI-driven underwriting.
- Deals are signed under definitive agreements.
Why it matters
- Small businesses are often underserved by formal credit.
- Vegafin wants faster turnaround, sharper risk selection and lower operating costs.
- Bizloan gives it 35+ branches across five states.
The business
- Vegafin plans a technology-led lending platform for micro, small and medium firms.
- It will combine AI underwriting (judging loan risk) with digital workflows.
- An on-ground branch network supports distribution.
- Bizloan offers secured MSME loans and began operating in 2018.
The founders
BB
Bijith Bhaskar
Founder and promoter- Former ICICI Bank executive
Who put in money
- Premji Invest Investor
- Norwest Investor
- Lok Capital Investor
In numbers
₹235 Cr+Bizloan AUM · 2026
35+Bizloan branches · 2026
What happens next
- Complete the Bizloan majority stake purchase.
Words to know
- NBFC
- Non-banking finance company that lends but is not a bank.
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