Mumbai-based fintech startup Saswat Finance has raised $ 2.6 million in a pre-Series A round led by Ankur Capital, with Incubate Fund Asia doubling down on its earlier investment.

The startup plans to utilize the new funding to enhance its technological infrastructure, introduce additional financial products, and scale its operations in Maharashtra, Karnataka, and Uttar Pradesh.

Established in 2022 by Arun Tiwari, Indrajyoti Bhattacharjee, and Ravi Ranjan Chaudhary, Saswat Finance is developing a technology-driven rural finance platform that utilizes both traditional and alternative data sources to improve credit accessibility for smallholder farmers and nano/micro enterprises.

The company's unique platform facilitates efficient credit origination, digital payment collection, and the distribution of insurance, initially focusing on cattle loans, insurance products, and para-veterinary services. It employs distinctive data inputs such as milk production, trends in cash flow, and geographical indicators to provide more precise risk evaluations and customized financial solutions.

Arun Tiwari, CEO and Co-founder of Saswat Finance says, "This new funding will empower us to advance our mission by investing in technology, deepening our reach, and aggressively scaling our operations. Saswat is uniquely positioned at the intersection of fintech, agritech, and insuretech to redefine access to financial services for underpenetrated segments."

The startup asserts that it has formed partnerships with significant contributors in the dairy cooperative sector, including AMUL, Britannia, Schreiber Dynamix, and Hatsun, along with insurers like Iffco Tokio and AIC, and financial institutions such as RBL Bank and Ambit Finvest, in order to enhance its distribution and product offerings.

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Krishnan Neelakantan, Partner at Ankur Capital, remarked, "Saswat is addressing a critical market gap by using their tech platform and leveraging alternative data for delivering substantial value at the last mile."

Rajeev Ranka, Partner at Incubate Fund Asia, added, "We are delighted to double down on our partnership with a team that combines strong financial services expertise with execution capability."