Premji Invest, Norwest Venture Partners, and Lok Capital have committed up to ₹1,000 crore to Vegafin, an AI-driven MSME lending platform, according to livemint.com. Part of the funds has been deployed to acquire a majority stake in Bizloan, a Gurugram-based NBFC specializing in secured MSME loans. The remaining capital will support platform development and expansion.
Vegafin was founded by ICICI Bank veteran Bijith Bhaskar, who serves as CEO and managing director. The company aims to build a technology-led MSME lending platform that combines AI-driven underwriting, digital workflows, and data-led credit decisioning with a strong on-ground distribution network. EY Investment Banking acted as the exclusive financial advisor for the transaction, per livemint.com.
The MSME sector in India faces a credit gap exceeding ₹30 trillion, creating a demand for a pan-India player with efficient cost structures and accurate risk pricing. Vegafin’s hybrid ‘phygital’ platform intends to democratize access to secured credit for MSMEs across their lifecycle by leveraging AI and data analytics. This investment aligns with growing interest in fintech solutions addressing underserved segments in India’s financial ecosystem.
Vegafin’s acquisition of Bizloan and the infusion of ₹1,000 crore mark a significant step in scaling AI-enabled lending for MSMEs. The deal was announced this week, with EY Investment Banking confirming its advisory role.