Chennai-based GrowXCD Finance, a startup that provides loans to small businesses, has raised INR 200 crore from Swiss impact investor Blue Earth Capital and Amsterdam-listed Prosus Ventures.
Blue Earth Capital led the funding round, investing INR 105 crore, while Prosus put in INR 70 crore, the company said.
This is GrowXCD’s second equity funding round this year. In January, it raised INR 50 crore from Lok Capital and UC Impower. Lok Capital, which first invested in November 2023, added INR 21 crore, while UC Impower invested INR 4 crore. With this, Lok Capital’s total investment in GrowXCD has reached INR 93 crore, making it the company’s largest shareholder.
“The capital infusion will mostly help us in expanding our portfolio and branches, besides improving the technology backbone,” Founder and managing director, Arjun Muralidharan, said. “This capital will be good for the next 12-18 months of business.”
“We plan to open 40-50 branches by March 2027. We will also explore geographical expansion in states like Madhya Pradesh, Maharashtra or maybe Uttar Pradesh,” he added.
“India’s MSMEs form the backbone of our economy yet remain significantly underserved on credit, said Gaurav Kothari, principal investor, Prosus India. “With rapid digital adoption, greater formalization and supportive government initiatives, we see a massive opportunity to build tech-led lending solutions for this segment.”
Founded in 2022, GrowXCD offers loans to MSMEs and salaried employees in smaller towns (tier-II and tier-III) across southern India. It currently runs 67 branches in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Puducherry.
The company now aims to increase its assets under management (AUM) from INR 300 crore to INR 500 crore by March 2026.
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