Fintech startup GrowXCD Finance has secured INR 50 crore ($6 million) in its Series A funding round, led by Lok Capital. The funding is designated for expanding the team, advancing technological innovations, and strengthening its market presence within the next 12 to 18 months. Founded in 2022 by Arjun Muralidharan and Sathishkumar Vijayan, GrowXCD, headquartered in Chennai, aims to establish a credit infrastructure tailored for MSMEs and low-income households. Its objective is to facilitate the smooth flow of institutional capital into retail assets backed by mortgages. The company has obtained a non-banking financial company (NBFC) license from the Reserve Bank of India.

At present, GrowXCD Finance operates through six branches in Tamil Nadu, providing two primary products: GrowShubam and GrowVyapaar, tailored for households and MSMEs, respectively. Lok Capital, established in 2004 by Donald Peck, Rajiv B. Lall, Venky Natarajan, and Vishal Mehta, stands as an impact investor with investments in startups like Affordplan, Equitas, Mintify, and RenewBuy. Their recent investment highlights GrowXCD’s strategic emphasis on utilizing technology to expand financial accessibility in Tier-I and Tier-II cities.

This funding round occurs amid a thriving Indian fintech landscape. Indian Fintech Report, Q3 2023 anticipate the Indian fintech market to reach approximately $2.1 trillion by 2030, with an expected 18% CAGR. This development aligns with other recent funding activities within the fintech sector. For instance, Kiwi, a fintech startup, secured $13 million in its Series A round led by Omidyar Network India, aiming to scale up its 'credit cards on UPI' offerings nationwide. Similarly, Slice, another fintech startup, obtained INR 75 crore (about $9 million) in debt funding from Stride Ventures to advance technological solutions and promote financial inclusion at grassroots levels.