Lending firm Prayaan Capital raises ₹110 crore from Peak XV Partners

Rangarajan Krishnan

Non-banking finance company Prayaan Capital has raised ₹110 crore led by Peak XV Partners, according to a statement. Former Five Star Business Finance CEO Rangarajan Krishnan recently acquired a controlling stake in the 2018-founded Prayaan Capital.

The statement said that the capital will be used to build Prayaan Capital’s lending platform, expand its team, and grow its presence across key MSME markets in India.

The company plans to focus on loans to micro, small and medium enterprises (MSMEs), a segment that continues to face a large funding shortfall, it said, adding that the credit gap for India’s MSMEs is pegged at about $300 billion.

“Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit. Prayaan Capital is built on the belief that combining deep customer understanding with technology can meaningfully expand access,” Krishnan said. He stepped down as the Five Star Business Finance‘s CEO in August last year.

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

Get updates on your preferred social platform

Follow us for the latest news, insider access to events and more.