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Fintech startup SarvaGram Solutions raises $35 mn in funding round

Originally appeared in Business Standard on January 3, 2023

Fintech startup SarvaGram Solutions has raised USD 35 million (about Rs 290 crore) in a funding round from a clutch of investors including Elevar Equity, Elevation Capital, Temasek and TVS Capital Funds.

SarvaGram provides a range of customised financial and capacity-enhancing products to unlock the potential of aspirational rural India.

It closed its Series B round at USD 10 million in February 2021, which was led by Elevation Capital and Elevar Equity.

The company announced “close of its Series C round at USD 35 million. Investors in this round include Elevar Equity, Elevation Capital, Temasek and TVS Capital Funds, with Elevar Equity being the largest investor in the company.”

With this funding round, SarvaGram plans to expand its distribution network by adding 75 outlets (to reach 125) by the end of financial year FY2024.

“It also plans to expand its on-ground franchisees -known as ‘SarvaMitra’ – to 3X of the current strength across different states in India. The funds would also be deployed towards strengthening the technology layer – both in terms of hiring tech talent and solidifying SarvaGram’s existing tech stack – to support and enhance business operations,” the company said in a statement.

It takes a 360-degree view of rural households as cohesive economic units and applies data-driven intelligence to assess their overall potential – including an in-depth understanding of their ground reality, balance sheets and multiple income streams.

“The fundraise will boost our mission of putting more power in the hands of rural households by enhancing our technology platform, strengthening the data analytics layer apart from growing our distribution and adding on-ground human capacity,” SarvaGram co-founder, MD and CEO Utpal Isser said.

Headquartered in Mumbai, SarvaGram currently operates out of 8 hubs, over 50 outlets across 4 states. The company claims to have more than 250 franchise partners covering 8,000 villages.

Elevar Equity Managing Partner Jyotsna Krishnan said SarvaGram is at the cusp of two critical trends which include the inflection point in rural markets as demonstrated by growing economic activity and aspirations seen across rural households.