Rural lending startup SarvaGram raises Rs 77 crore

SarvaGram Fincare has raised Rs 77 crores in the second round of funding led by Elevation Capital. The investment for the rural lending startup has been raised through Elevation Capital, a venture capital firm.

SarvaGram earlier received seed funding of Rs 25 crores from Elevar Equity which, along with Elevation Capital, now holds a majority stake in the company.

SarvaGram, founded by Utpal Isser and Sameer Mishra, aims at allowing livelihood upgradation for rural and semi-urban households in India. SarvaGram, which is currently present in Gujarat and Maharashtra, will soon expand to Karnataka and Rajasthan. The startup would have 50 branches in the four states by mid-2022.

The business model allows employees to take credit decisions within minutes and allow digital transactions restricting the use of cash. The company anticipates to record Rs 325 crore through lending, increasing to Rs 7,000-8,000 crore in five years.