Chennai-based non-banking finance company GrowXCD Finance has secured approximately Rs 200 crore ($22.5 million) in a fresh funding round led by impact investor Blue Earth Capital and Prosus Ventures, with participation from existing backers Lok Capital and UC Impower. The capital infusion underscores the growing interest in financial inclusion strategies targeting India’s underserved micro, small, and medium enterprises (MSMEs) and low-income households.

Scope and Strategic Framework

Founded in 2022 by Arjun Muralidharan, GrowXCD Finance is an RBI-registered non-banking finance company specializing in small-ticket loans designed to deliver outsized social and economic impact. The lender operates across 60 branches in Tamil Nadu, Karnataka, Andhra Pradesh, and Puducherry, focusing on extending credit to small business owners and cash-salaried employees through mortgage-backed lending.

The company’s loan against property (LAP) portfolio has already crossed Rs 300 crore, reflecting strong demand for accessible financing in India’s MSME sector. With this latest round of capital, GrowXCD plans to deepen its penetration in semi-urban and rural markets while continuing to expand its portfolio of impact-driven lending products.

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Economic and Social Impact

India’s MSMEs employ over 110 million people and contribute significantly to GDP, yet remain chronically underserved when it comes to access to formal credit. By extending loans to this segment, GrowXCD aims to reduce financial exclusion while enabling entrepreneurship, job creation, and community resilience.

“GrowXCD’s mission to bridge the credit gap for underserved MSMEs in India aligns closely with our investment philosophy,” said Rohan Ghose, Director of Private Equity Partnerships at Blue Earth Capital. The firm’s impact-oriented approach suggests confidence in GrowXCD’s ability to combine profitability with social outcomes.

Prosus Ventures, a global investor in emerging technologies, emphasized the broader macroeconomic opportunity. “India’s MSMEs form the backbone of our economy, yet remain significantly underserved on credit. With rapid digital adoption, greater formalization, and supportive government initiatives, we see a massive opportunity to build tech-led lending solutions for this segment,” said Gaurav Kothari, Principal Investor at Prosus India.

Governance and Business Performance

While GrowXCD has shown impressive growth, challenges remain in balancing expansion with profitability. The company reported revenues of Rs 3.75 crore in FY24, up sixfold from Rs 60.7 lakh the previous year. However, losses also widened to Rs 89 lakh from Rs 26 lakh in FY23, highlighting the growing pains of scaling a young NBFC in a competitive and regulated lending environment.

Despite these financial pressures, the backing from Blue Earth Capital and Prosus Ventures provides not only capital but also validation of GrowXCD’s governance, impact model, and long-term potential. The participation of existing investors Lok Capital and UC Impower further reinforces confidence in the company’s trajectory. Unitus Capital acted as financial advisor on the deal.

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Future Outlook

With its expanded capital base, GrowXCD Finance is poised to accelerate its strategy of reaching underserved MSMEs and low-income households with tailored financial solutions. The company’s focus on small-ticket mortgage-backed lending positions it to bridge a persistent financing gap while contributing to inclusive economic growth.

If executed successfully, GrowXCD’s growth could serve as a model for impact-driven financial institutions across India, blending traditional credit delivery with tech-led efficiency. For investors like Blue Earth Capital and Prosus, the deal represents both a financial opportunity and a chance to shape the future of inclusive finance in one of the world’s fastest-growing economies.

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