Non-banking finance company (NBFC) Namdev Finvest has raised USD 15 million (around Rs 125 crore) in an equity funding round from British International Investment, existing investor Incofin India Progress Fund, LC Nueva, some employees and promoters.

Both British International Investment and Incofin pumped in 25 million rupees each, while LC Nueva gave around 10.6 million rupees, the company said.

While the NBFC is based in Jaipur with 80 percent of its business operations in Rajasthan, it is in the process of expanding operations in Gujarat, Madhya Pradesh, Delhi and Uttar Pradesh.

“We intend to use the money that we have raised mainly to fuel our lending operations, support geographical expansion and invest in technology,” says chief executive officer Jitendra Tanwar.

Namdev offers small business loans and is in the process of expanding into green finance after this new funding round. It intends to fund electric tricycles and offer loans to companies building infrastructure in the electric mobility ecosystem. It will also offer solar loans for both commercial and residential purposes.

“We are focused on tier-three and -four locations and serve customers who are not catered to by traditional banking channels. Hence, we also have a strong branch-led business model,” Tanwar adds.

Tanwar added that 85 percent of its Rs 1,000 crore assets under management are in the SME space and the rest in the green finance sector.

By FY25, the company intends to increase its AUM to Rs 2,500 crore. It plans to set up branches in new states, increasing its branch presence to 150 by FY25 from the current 110.

“Through this commitment, we cannot only help improve access to credit for more underserved MSMEs in Tier II and Tier III cities but also promote sustainable economic growth through Namdev’s new green loan product for EV and solar products,” says Srini Nagarajan, managing director and head of Asia at British International Investment.