GrowXCD Finance, a Chennai-based lender focused on small businesses, has raised Rs 200 crore in equity funding led by Swiss impact investor Blue Earth Capital and Amsterdam-listed Prosus Ventures. This latest funding round saw Blue Earth Capital contribute Rs 105 crore, with Prosus adding Rs 70 crore. Existing investor Lok Capital also increased its stake by Rs 21 crore, making it the largest shareholder with a total investment of Rs 93 crore. UC Impower invested Rs 4 crore more in the round.
Strengthening Presence in Southern India
Founded in 2022, GrowXCD targets micro, small, and marginal enterprises (MSMEs) and salaried workers in tier-II and tier-III towns across southern India. It currently operates 67 branches spread across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Puducherry. The company’s assets under management (AUM) stand at Rs 300 crore.
The fresh capital aims to enhance GrowXCD’s lending portfolio, expand its branch network, and strengthen its technology base. Founder and MD Arjun Muralidharan said the funds will sustain business operations for the next 12 to 18 months.
Aggressive Expansion Plans
GrowXCD plans to increase its AUM to Rs 500 crore by March 2026, reflecting strong growth ambitions. The company also intends to add 40 to 50 new branches by March 2027. Along with deepening its southern India operations, GrowXCD is exploring expansion into new states such as Madhya Pradesh, Maharashtra, and Uttar Pradesh.
This funding marks GrowXCD’s second equity raise in 2025, after it secured Rs 50 crore in January from Lok Capital and UC Impower. The growing investor interest underscores confidence in GrowXCD’s model of providing easy credit access to underserved small businesses and salaried workers.
Supporting MSMEs and Economic Growth
GrowXCD’s vision is to empower MSMEs by bridging the credit gap in smaller cities and towns. Its loan offerings include small property-backed mortgage loans and short-term unsecured business loans. The firm leverages technology to improve credit access while ensuring robust risk management.
By providing tailored financing solutions, GrowXCD aims to boost economic opportunity and livelihood for small entrepreneurs, contributing to India’s broader goal of inclusive growth.
