Rupifi, a Bengaluru-based online financial service platform that helps micro, small, and medium-sized enterprises (MSMEs) to find suitable financing, has raised $4.1 million in a pre-Series A funding round. The financing round was led by fintech-focused VC fund, Quona Capital along with participation from Ankur Capital and Flipkart Co-Founder Binny Bansal.

The capital raised will be used by the company to expand its product offerings, partnerships and to scale its team.

Rupify is backed by Super Angels including Kunal Shah, Ashneer Grover, and Ramakant Sharma, and supported by Seed Funds Better Capital and Cloud Capital (AngelList). It is also the first Indian startup to receive funding from Xoogler. co (Community of ex-Googlers in Silicon Valley and across the Globe) and the company had raised $650,000 in March.

Rupifi was founded in 2019 by Ankit Singh, Anubhav Jain, and Jawaid Iqbal to build financial products for the underserved SMEs in India and South East Asia. The firm offers MSMEs access to multiple lenders in a standardized way on digital business-to-business platforms and marketplaces. The company offers services to industries such as FMCG, pharmacy, fashion, and food.

“Indian SMEs have been struggling with getting access to capital for a long time. We are targeting one million MSMEs in the next five years,” said, Anubhav Jain, co-founder & CEO, Rupifi.

The company provides MSMEs with flexible payment options where interest is calculated only on the number of days they use the credit.

“Rupifi’s solution is innovative in addressing the fundamental gap of transaction-linked credit on B2B commerce platforms. Merchants on these platforms are often offered loans, but Rupifi enables them to make on-the-spot decisions of buying more inventory for growth at the point of purchase. Flexibility in cash flow management is key to serving the credit-starved MSME merchants,” said, Varun Malhotra, Principal, Quona Capital.