Delhi-based fintech startup Nakad has raised US$7 million as part of its seed funding round, co-led by Accel and Matrix Partners India. The equity funding round also saw participation from AdvantEdge Founders and other startup founders including Razorpay’s Harshil Mathur and Shashank Kumar; Zetwerk’s Amrit Acharya and Rahul Sharma. The company will deploy the funds to increase hiring and scale operations within India.
Founded in January 2022 by Ujwal Kalra, Sambhav Jain and Avinash Uttav, NAKAD focuses on making it easier for MSMEs to access working capital financing. The startup has partnered with several anchors (big companies) and their suppliers (primarily MSMEs), private banks and NBFCs to build an entire ecosystem on its platform.
NAKAD leverages its self-developed proprietary technology platform, MicroBill to offer financial assistance to small businesses. Its architecture “tokenizes invoices which then flow across the entire supply chain,” the company said in a statement.
“Hailing from a family of a Chartered Accountant and Industrialist, I implicitly understood the massive credit crunch of MSMEs, resulting in the inability to grow their business and pay their employees on time,” said Ujwal Kalra, CEO, NAKAD.
“The founders have a unique approach to penetrating large industrial ecosystems with software and then driving formal payments and credit penetration among MSMEs in that ecosystem,” said Vikram Vaidyanathan, managing director, Matrix India.