Impact investors Lok Capital and UC Impower have invested a combined Rs. 50 crore in GrowXCD Finance, a non-bank startup, offering loans to small businesses across Tamil Nadu, Karnataka, and Andhra Pradesh.

The fresh capital injection will be used to expand GrowXCD’s loan portfolio, deepen its presence in untapped southern Indian markets, and help bridge the credit gap in the rural MSME sector, according to Founder and Managing Director Arjun Muralidharan.

Founded in June 2023, the company currently serves customers in Tier II and III cities. Lok Capital, which had already invested Rs. 50 crore, has contributed an additional Rs. 20 crore, bringing its total investment in the tech-driven non-banking finance company (NBFC) to Rs. 70 crore.

Rajat Bansal, Managing Director of Lok Capital, praised the company’s progress since the Series-A round, noting that the positive impact motivated the additional investment.

Meanwhile, UC Impower, incubated by Unitus Capital, invested Rs. 30 crore. Mona Kachhwaha, co-founder and partner at UC Impower, emphasized their long-term commitment to supporting GrowXCD and other portfolio companies through future fundraising rounds, with a typical investment horizon of five to seven years.

Following this funding, GrowXCD Finance’s net worth has risen to Rs. 110 crore. The company has already built a Rs. 130 crore portfolio and aims to expand it to Rs. 500 crore by March 2026.