Peak XV Leads INR 110 Cr Series A Investment in Prayaan Capital The fresh capital will be used to build its lending platform, strengthen its team, and expand operations across key MSME markets in India.
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Prayaan Capital, a technology-enabled MSME lending platform, has raised INR 110 crore in a Series A funding round led by Peak XV Partners.
The fresh capital will be used to build its lending platform, strengthen its team, and expand operations across key MSME markets in India.
The company is led by Rangarajan Krishnan, former joint managing director and CEO of Five-Star Business Finance. Krishnan recently acquired a controlling stake in Prayaan Capital and aims to transform it into a new-age lending platform focused on improving credit access for small businesses.
Prayaan Capital plans to combine on-ground underwriting expertise with a technology-first approach spanning sourcing, underwriting, and collections.
The firm intends to serve underserved micro, small and medium enterprises (MSMEs), a segment estimated to face a credit gap of nearly USD 300 billion in India.
The company seeks to build an institution that blends branch-led distribution with a technology-enabled operating model. By using digital tools alongside customer-level insights, it aims to improve credit delivery and better meet the needs of small business owners.
Prayaan Capital focuses on expanding access to finance for entrepreneurs across India by integrating modern technology with deep underwriting capabilities.
Peak XV Partners manages over USD 10 billion across 16 funds and has invested in more than 450 companies, with over 35 IPOs and multiple mergers and acquisitions recorded in its portfolio.
