[Funding alert] SSA Finserv raises $3M from Blue Ashva Capital to expand MSME lending operations
Small businesses-focused non-banking lender SSA Finserv has raised $3 million (around Rs 21 crore) from Blue Ashva Capital.
The funding, made through Blue Ashva Sampada Fund, will be used to expand lending from top cities to small towns, the NBFC said in a statement on Tuesday.
"The investment will further reaffirm our commitment to become a preferred financial partner for small businesses by expanding our reach into more locations," said Vikas Agarwal, Founder, Managing Director, and CEO of SSA Finserv.
Satya Bansal, the Founder of Blue Ashva Capital, said they are happy to be associated with SSA to help small businesses scale up their business as they form the economy's backbone.
SSA Finserv, founded in June 2019 by Vikas Agarwal in Mumbai, specialises in providing customised finance to small businesses through cash-flow based loan products. It offers both collateral-free and collateral-backed loans, loans against work orders and sales, and bill discounting.
It offers loans in the Rs 10 lakh to Rs 1 crore ticket size across manufacturing, services, and trading segments with a turnover of Rs 1-50 crore.
Blue Ashva Capital backs sustainable and profitable businesses that help solve real challenges in sectors like agriculture, decarbonisation, circular economy, and small businesses. The investment firm has a presence in both Singapore and India.
India’s MSME sector — which houses about 70 million enterprises and employs around 110 million people — is one of the worst-affected due to the disruption caused by the COVID-19 led lockdown. With factories shutting down, freeze in production, and disruption in supply chains, small businesses have been facing the heat of the coronavirus pandemic.
Moreover, MSMEs’ sizable contribution to the GDP and exports, which is around 30 percent and 45 percent, respectively, is another reason why the Indian economy is feeling the burden of several MSMEs toppled due to the pandemic.
Edited by Suman Singh