SarvaGram Solutions, a fintech startup, has raised $35 million (approximately Rs 290 crore) in a funding round led by Elevar Equity, Elevation Capital, Temasek, and TVS Capital Funds. SarvaGram offers a variety of customised financial and capacity-building products to help aspirational rural India realise its full potential.
Elevation Capital and Elevar Equity led the $10 million Series B round, which closed in February 2021. The company announced the completion of its Series C round, which totaled $35 million. Elevar Equity, Elevation Capital, Temasek, and TVS Capital Funds are among the investors in this round, with Elevar Equity being the largest.
SarvaGram intends to use this funding round to expand its distribution network by 75 outlets (to 125) by the end of fiscal 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 examines rural households as cohesive economic units from all angles and employs data-driven intelligence to assess their overall potential, which includes an in-depth understanding of their ground reality, balance sheets, and multiple income streams.
Commenting on the fund raise, "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.
SarvaGram, headquartered in Mumbai, currently operates from 8 hubs and over 50 outlets spread across four states. The company claims to have over 250 franchise partners spread across 8,000 villages. According to Elevar Equity Managing Partner Jyotsna Krishnan, SarvaGram is on the verge of two critical trends, including the inflection point in rural markets, as evidenced by rising economic activity and aspirations among rural households.