By CIO Insider Team
 

According to reports, Madhya Pradesh-based non-banking financial company (NBFC) Finodaya Capital has raised $2.5 million in seed funding, led by fintech-focused venture capital firm White Venture Capital, at a post-money valuation of Rs 50 crore.

Several angel investors and Gemba Capital, an early-stage investor, also participated in the round.

Amrish Rau, the CEO of Pine Labs, Jitendra Gupta, the CEO of Jupiter, and angel investor Sweta Rau founded White Venture Capital, a fintech-focused fund. Sweta Rau is the fund's general partner, and Amrish Rau and Gupta are its limited partners and advisors.

“Finodaya, which was granted its NBFC licence by the Reserve Bank of India on 11 April, plans to offer micro loans against property to small businesses and micro enterprises across India. The company will adopt a phygital model, combining digital infrastructure with a physical branch network, to underwrite and disburse secured credit,” says cofounder Lokendra Tomar.

The company was founded by former ICICI Bank executives Tomar, Abhitabh Dixit, and Neeraj Biyani. It aims to serve micro and nano enterprises—a segment historically underserved by traditional lenders.

[CIOS_QUOTES_REPLACE“Many micro and nano enterprises are trapped in cycles of high-cost borrowing from local moneylenders. We aim to break that pattern by providing fair and adequate financing to help them grow. More importantly, we’re enabling their transition into the formal financial system—by offering the right support to strengthen their credit profile, making them ready for the next phase of their growth,” adds Tomar.

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Over the next six months, Finodaya intends to open 15 physical branches throughout Madhya Pradesh, with the goal of disbursing between Rs 50 and Rs 100 crore in loans by the following year.