In a major boost to India’s emerging digital lending sector, InPrime Finserv has raised Rs 50 crore in its Series A1 funding round, led by Pravega Ventures with participation from existing investors including Nabventures Fund and a slew of angel backers. This capital infusion is expected to accelerate the company’s expansion across underserved markets, enhance its tech infrastructure, and strengthen compliance readiness as the fintech sector faces evolving regulatory expectations.
About InPrime Finserv
Founded in 2022 by Dinesh Kumar and Siddharth Patel, InPrime Finserv focuses on providing customised credit solutions to underserved small businesses and salaried individuals across semi-urban and rural India. Its proprietary credit scoring models integrate alternative data sources to assess risk more inclusively, ensuring wider access to formal finance.
| Key Metrics – InPrime Finserv | Details |
|---|---|
| Founded | 2022 |
| Founders | Dinesh Kumar, Siddharth Patel |
| Headquarters | Bengaluru, Karnataka |
| Focus Area | MSME and retail lending |
| Investors | Pravega Ventures, Nabventures Fund |
| Total Funding | Rs 90 crore (approx) including seed and Series A1 |
| Business Model | Digital-first NBFC |
| Key Differentiator | Proprietary inclusive credit scoring |
Strategic intent of the Series A1 round
Speaking about the fundraise, Dinesh Kumar, co-founder and CEO, said:
“This investment will help us deepen our distribution network, upgrade our digital underwriting engine, and innovate more inclusive financial products for aspirational Bharat.”
The company aims to deploy this funding towards:
- Geographical expansion: Targeting Tier II and III cities in Karnataka, Maharashtra, Tamil Nadu, and Madhya Pradesh in FY26.
- Technology investment: Upgrading its AI-powered credit assessment and fraud prevention systems.
- Team expansion: Strengthening risk, analytics, and field operations teams to scale responsibly.
- New product launches: Rolling out secured lending products like gold loans and micro-enterprise business loans to diversify its portfolio.
Investor confidence in inclusive credit models
Lead investor Pravega Ventures highlighted the thesis behind their investment. Partner Abhishek Gupta noted:
“The next fintech growth wave will come from lenders solving for the credit gap in Bharat. InPrime’s deep focus on customer understanding, compliance discipline, and differentiated underwriting give it a strong foundation.”
The underserved credit market opportunity
According to RBI’s financial inclusion reports, over 70% of MSMEs remain dependent on informal or semi-formal borrowing channels. Fintech lenders like InPrime Finserv aim to bridge this gap by:
- Using alternative credit scoring models to onboard first-time borrowers
- Combining phygital (physical + digital) distribution to drive awareness and trust
- Offering products tailored to cash-flow cycles of MSMEs and daily-wage workers
- Maintaining rigorous risk frameworks to ensure portfolio quality
Competitive landscape
The Indian digital lending sector has seen intense activity with start-ups like KreditBee, MoneyTap, Avail Finance, and Lendingkart expanding aggressively. However, experts argue that players with risk-calibrated growth, sectoral focus, and compliance readiness will outlast hyper-growth models.
| Major Digital Lenders for MSMEs & Salaried Borrowers | Key Focus | Funding Raised |
|---|---|---|
| InPrime Finserv | Inclusive MSME & retail lending in semi-urban/rural | Rs 90 crore |
| KreditBee | Salaried lending, BNPL | Rs 1,600 crore+ |
| Lendingkart | MSME working capital loans | Rs 1,200 crore+ |
| MoneyTap | Personal loans for salaried | Rs 700 crore+ |
| Avail Finance | Blue-collar lending | Rs 250 crore+ |
Recent sector trends
- RBI’s new digital lending guidelines have tightened norms for NBFCs and fintech lenders, focusing on transparency, data privacy, and fair lending practices.
- Investor focus has shifted from top-line growth to profitability and asset quality, given the macro-financing environment and funding winter pressures.
- Consolidation and strategic acquisitions are expected in FY26 as larger lenders acquire niche players to expand their borrower base and technology capabilities.
InPrime Finserv’s vision
Co-founder Siddharth Patel emphasised:
“Our mission is to democratise access to credit for millions who remain unbanked or underbanked despite India’s fintech boom. We are building a sustainable lending institution that combines technology with empathy.”
The company plans to:
- Grow its loan book 3X by FY27, focusing on high-quality, low-ticket lending.
- Maintain gross NPAs below industry average by leveraging rigorous underwriting and early warning systems.
- Expand its distribution through strategic BC (Business Correspondent) partnerships and fintech alliances.
- Launch financial literacy programmes in local languages to deepen borrower understanding and credit discipline.
Industry expert views
Rahul Chandra, Managing Partner at Arkam Ventures, commented:
“Fintech 2.0 is about solving for Bharat’s real credit needs with compliance-first business models. InPrime Finserv’s inclusive approach is well-timed as the next 500 million users come online.”
Future funding and IPO plans
InPrime Finserv is expected to raise a Series B round in 12-18 months to support its balance sheet growth before targeting IPO plans by FY29, depending on market conditions, loan book size, and profitability milestones.
Outlook for India’s fintech lending sector
- MSME credit demand is projected to grow at a 22% CAGR till 2030, driven by formalisation, GST-based cash flow records, and government-backed digital public infrastructure.
- Investor focus will remain on asset quality, profitability, and regulatory compliance over raw growth metrics.
- Partnerships with banks and NBFCs will drive co-lending models to scale efficiently.
Conclusion
The Rs 50 crore Series A1 funding round led by Pravega Ventures marks a strong vote of confidence in InPrime Finserv’s vision to democratise credit access for aspirational Bharat. As India’s financial inclusion narrative enters its next chapter, lenders that combine technology, empathy, and risk management discipline are expected to define the future.
Disclaimer: This article is for informational purposes only. Readers are advised to consult certified financial and regulatory advisors before making lending, investment, or partnership decisions based on this content.
