SarvaGram Solutions has secured $35 million in funding. The company will use the money to expand its distribution network.
SarvaGram Solutions, a loan and distribution platform for rural households, has secured $35 million in its Series C fundraising round from Elevar Equity, Elevation Capital, Temasek, and TVS Capital Funds. In September of last year, DealStreetAsia was the first to report on this development.
SarvaGram plans to use the new funds to extend its distribution network by adding 75 new locations (bringing the total to 125) by the end of fiscal year FY2024. The firm also intends to triple the number of its on-ground franchisees, known as ‘SarvaMitra,’ throughout several Indian states, according to a release. Furthermore, the money will be used to reinforce the technology layer — both in terms of acquiring tech expertise and solidifying SarvaGram’s existing tech stack — in order to support and enhance business operations, according to the announcement.
“The funding will help us further our aim of putting more power in the hands of rural families by improving our technological platform, increasing the data analytics layer, expanding our distribution, and boosting on-the-ground human capability,” said SarvaGram co-founder, MD, and CEO Utpal Isser.
SarvaGram, founded in 2019 by senior rural bankers Isser and Sameer Mishra, creates exclusive tools, such as scorecards, for clients in various categories in order to automate loan choices. SarvaGram provides farm, housing, gold, and consumer durable loans to the expanding middle-class in distant areas, as well as farm-mechanisation services – the firm claims to have reached over 6,000 villages in India thus far.
SarvaGram, headquartered in Mumbai, now runs eight hubs and over 50 stores across four states. The organisation claims to have over 250 franchise partners spread throughout 8,000 towns.
SarvaGram last raised $10.5 million (Rs 76.32 crore) as part of its Series B fundraising round in 2021. While Elevation Capital (formerly SAIF Partners) led the round, Elevar Capital, which originally invested in the firm in October 2019, also participated.