GrowxCD Finance Secures B Series Funding to Expand Growth

NBFC startup GrowxCD Finance is set to launch its Series B funding round, aiming to raise ₹200 crore (approximately $22.7 million). The funding is spearheaded by Switzerland-based Blue Earth Capital, with participation from existing investors Prosus, Lok Capital, and UC Rounter.

Previous Funding Success

Earlier this year, GrowxCD raised ₹50 crore in its previous funding round, backed by Lok Capital and UC Rounter. This recent move reflects the company’s growing influence in the non-banking financial company sector.

Details of the B Series Funding

The GrowxCD board of directors has approved a proposal to issue 1,56,92,344 preferential shares at an issue price of ₹127.61 each, aiming for a total of ₹200.25 crores in this funding round. Regulatory filings from the Business Registrar (ROC) confirm this significant capital influx.

Investor Contributions

In this funding round, Blue Earth Capital will contribute ₹105 crore ($12 million), followed closely by Prosus with ₹69.4 crore ($7.9 million). Additionally, existing investors Lok Capital and UC Rounter will invest ₹21.3 crore ($2.4 million) and ₹4.26 crore, respectively. Anshul Agarwal is also set to join the investment with ₹25 lakh.

Growth and Valuation

Recent assessments indicate that GrowxCD’s valuation has surged, now sitting at approximately ₹630 crore ($71.5 million), which is nearly triple compared to ₹215 crore during the last round. This impressive growth illustrates the company’s strong market presence and potential for future expansion.

Focus on MSMEs and Low-Income Households

Founded in 2022 by Arjun Muralidharan and Sathish Kumar Vijayan, GrowxCD Finance primarily serves micro, small, and medium enterprises (MSMEs) and low-income households. The company specializes in providing mortgage loans and unsecured short-term business loans, aimed at supporting financial inclusivity.

Future Projections

According to data from the startup intelligence platform The Kredible, GrowxCD had raised around $12 million before this recent round. Following the latest funding, Blue Earth Capital will hold a 16.7% stake, Prosus will take an 11.04% share, while Lok Capital retains its position as the largest shareholder with 30.84% ownership.

Financial Performance

For the financial year 2024, GrowxCD has projected revenues that could soar sevenfold, reaching ₹27 crores. However, it is noteworthy that losses have also increased to ₹8.17 crore during this period. This highlights the challenges of scaling while maintaining profitability.

As GrowxCD Finance embarks on this new funding journey, its commitment to serving financially underserved segments positions it well for future success in India’s growing NBFC landscape.