Svasti Microfinance Raises $5.7 million to Scale AI-Driven Lending, Targets ₹1,400 Crore AUM by 2027

Svasti Microfinance Private Limited, an RBI-licensed fintech and microfinance institution (MFI), has raised ₹47.5 crore (approximately $5.7 million) from its existing investors, including Adar Poonawalla, Abler Nordic, and the Rajiv Dadlani Group.

The funding round combines equity and subordinated debt, marking an important step in Svasti’s strategy to transform from a conventional microfinance provider into a technology-first financial services platform.

The fresh capital will be used to expand Svasti’s loan portfolio, strengthen its digital infrastructure, and introduce diversified financial products beyond traditional joint liability group lending. The company has set an ambitious goal of achieving ₹1,400 crore in assets under management (AUM) by March 2027.

SvasTech Platform Powers Digital Lending

Central to Svasti’s growth strategy is its proprietary fintech platform, SvasTech, which integrates Artificial Intelligence (AI) and Machine Learning (ML) to automate lending operations and enhance credit assessment.

Unlike generic industry platforms, SvasTech provides an end-to-end digital ecosystem that helps the company streamline operations, improve risk evaluation, and better understand borrower behavior.

By leveraging advanced data analytics, the platform can evaluate creditworthiness in segments that traditionally lack formal financial documentation—such as micro-entrepreneurs and small informal businesses. This capability allows Svasti to provide loans to underserved communities that are often excluded from mainstream financial systems.

Expanding Beyond Traditional Microfinance

According to the company, SvasTech has been upgraded over the past year to support a wider range of financial products beyond the traditional Joint Liability Group (JLG) lending model, which has long been a staple of India’s microfinance sector.

The platform’s modular architecture also enables deep-tech co-lending partnerships with banks and non-banking financial companies (NBFCs), opening new opportunities for scalable growth.

Svasti co-founder Narayanan Subramaniam described SvasTech as a transformative technology backbone for the company’s expansion.

He noted that the platform has been re-engineered to enable seamless integration with partners and facilitate diversified financial services, allowing Svasti to broaden its lending reach and improve operational efficiency.

Investors Double Down on Svasti’s Vision

Existing investors reaffirmed their confidence in Svasti’s technology-driven approach and long-term growth potential.

Smriti Chandra, Regional Director for Asia at Abler Nordic, highlighted the company’s resilience and strong customer-focused strategy since the firm first invested in Svasti in 2018.

She emphasized that the company’s technology-enabled operations and dedicated workforce have helped it navigate industry challenges while continuing to expand responsibly.

Driving Financial Inclusion Across India

Svasti aims to expand its presence to 150 branches across seven Indian states while strengthening its mission to promote financial inclusion, particularly among women entrepreneurs and micro-enterprises.

The company currently employs around 1,800 professionals and is focused on building a sustainable financial services model that balances profitability with social impact.

With fresh funding and an AI-powered fintech platform at its core, Svasti is positioning itself to play a key role in bridging India’s credit gap for underserved communities, while evolving into a broader consumer finance provider.