GrowXCD Finance has successfully secured approximately INR 200 crore in funding from Blue Earth Capital and Prosus Ventures to enhance its portfolio and expand its service network across India.

Target Company Overview

GrowXCD Finance, headquartered in Chennai, is a prominent non-banking finance company (NBFC) established in 2022 by Arjun Muralidharan. The company's mission is to foster economic growth by providing access to capital for micro, small, and medium enterprises (MSMEs) as well as low-income households. With a current operational footprint of over 60 branches across Tamil Nadu, Karnataka, Andhra Pradesh, and Puducherry, GrowXCD has made significant strides in channeling institutional capital into retail assets secured by mortgages. This firm specializes in catering to the nuanced financial needs of MSMEs, offering solutions for working capital, income generation, and business expansion, and has successfully built a loan book exceeding INR 300 crore.

Industry Overview in India

India's MSME sector is a crucial pillar of its economy, contributing significantly to GDP, employment, and overall industrial output. However, the segment has historically been underserved in terms of credit availability, which hampers its potential for growth and sustainability. Challenging market conditions, alongside traditional lending approaches, have led to credit gaps that persistently affect many small businesses. This situation has drawn the attention of both investors and policymakers, who recognize the necessity for reforms and new funding models to enhance the financial ecosystem for MSMEs.

Recent trends indicate a shift towards more formalized lending practices, driven by rapid digital adoption and supportive government initiatives aimed at increasing access to credit for the MSME sector. Fintech innovations and the emergence of tech-l