New Delhi, March 20 (IANS) Optimo Loan, an MSME lending-tech business for rural India, has secured $10 million in seed funding from Blume Ventures and Omnivore, with an additional contribution from the company’s founder, Prashant Pitti. The investment is aimed at revolutionizing MSME lending in rural India through cutting-edge technology and a phygital distribution model.
Optimo, which started its lending operations in November 2023, plans to become an asset-light company by leveraging co-lending agreements with banks and larger NBFCs. The startup is focused on building a co-lending platform for MSMEs with a unique underwriting method, enabling informed lending decisions and catalyzing entrepreneurship in rural communities.
Ashish Fafadia, a Partner at Blume Ventures, expressed confidence in Optimo’s mission to democratize access to finance for MSMEs in rural India. He highlighted the significant contribution of MSMEs to the country’s GDP and the potential for elevating this contribution further over the next few years. Reihem Roy, Partner at Omnivore, also emphasized the innovative lending technology model of Optimo and its potential to make a substantial impact in underserved communities.
India currently faces a credit deficit, with only 25% of all MSMEs having accessed formal loans, leaving 53 million businesses untapped. Optimo’s efforts to address this gap and support economic growth in rural areas are seen as crucial for unlocking the immense potential of these underserved businesses.
