Saswat Finance's $2.6M Pre-Series A Milestone

In a significant stride forward, Mumbai-based fintech startup Saswat Finance has successfully garnered $2.6 million in its pre-Series A funding round. The prominent venture capital firm Ankur Capital spearheaded the investment, underscoring its belief in Saswat’s ambitious vision of transforming rural financial landscapes through innovative tech-driven solutions.

Catalysts Behind the Investment

The investment round saw the participation of Incubate Fund Asia, reaffirming its commitment by doubling down on its earlier investments. The financial advisory firm Goyel & Goyal played a pivotal role in securing the deal, with expert guidance from Akshit Goyal and his team of associates, Abhilasha Mittal and Shivantika Srivastava.

Strategic Utilization of Funds

Saswat Finance plans to channel these new funds into scaling its proprietary technology platform, enhancing its suite of financial and insurance offerings, and expanding its regional footprint further into Maharashtra, Karnataka, and Uttar Pradesh. This initiative aligns with industry projections expecting the Indian dairy sector to burgeon to a whopping $180 billion by 2032.

Bridging Rural Financial Gaps

Saswat Finance is on a mission to bridge the rural credit gap by employing alternative data like milk production metrics and weather conditions to underwrite loans. This innovative approach has already seen them disburse over ₹55 crore in loans, partnering with major dairy cooperatives like AMUL and Britannia, alongside financial and insurance giants like RBL Bank and Iffco Tokio.

The Road Ahead

With a fortified presence and robust financial backing, Saswat Finance is poised to leverage its tech-savvy solutions to improve accessibility to financial services in India’s rural areas, greatly empowering small dairy farmers. As stated in Bar and Bench, the startup’s strong execution coupled with its deep understanding of rural financial needs places it at a promising trajectory for future growth.

The success of this funding round marks not just a financial milestone but a testament to Saswat Finance’s unwavering commitment to reimagining rural financial services in India.