Namdev Finvest, a Jaipur-based micro, small, and medium enterprise (MSME) lender, has successfully raised $38 million (around Rs. 330 crore) from several development finance institutions (DFIs).

This funding round includes participants from the US Developing World Markets (DWM), BlueOrchard-managed funds like the BlueOrchard Microfinance Fund and the COVID-19 Emerging and Frontier Markets MSME Support Fund, and the global asset management firm Mirova. It highlights the increasing confidence that global impact investors have in Namdev Finvest’s growth strategy. 

DWM provided $8.25 million in debt funding, while BlueOrchard Finance allocated $13 million through its two funds. Mirova, which is affiliated with Natixis Investment Managers, invested $10 million, marking its first investment in the Indian market. These funds are expected to enhance Namdev Finvest’s goal of providing financial services to underserved and unbanked borrowers in rural and semi-urban regions. The company plans to expand its lending operations beyond the conventional domestic bank and NBFC models, concentrating on innovative and inclusive financing solutions. 

The $38 million funding round is part of a series of successful initiatives. In the last year the company has raised $34 million in two separate funding rounds. In April, the company raised $19 million or Rs 158 crore in a pre-Series C funding round, led by a Danish asset management firm Maj Invest. The round also saw participation from the company’s promoter group and employees. In the first half of 2024, the company raised $15 million in a series B funding round from institutional investors like British International Investment and LC Nueva, along with the existing backer Incofin India Progress Fund.

Namdev Finvest’s initiatives are in line with broader developmental objectives, including support for clean mobility and renewable energy projects. “The investment aligns our mission with the DFIs’ commitment to sustainability and inclusivity,” the company stated.

Founded in 2013 by Jitendra Tanwar, Namdev Finvest focuses on lending MSMEs. About 90% of its portfolio comprises secured MSME loans, while the remaining 10% includes two-wheeler loans and financing for green and renewable energy projects. As of March 31, 2024, the company’s assets under management (AUM) reached ₹1,185 crore, reflecting an impressive annual growth rate of 80-90% over the last two years. This strong growth has significantly increased profitability, with net income more than doubling to ₹27 crore in the fiscal year ending March 2024.