ImpactAlpha, January 4 – SarvaGram provides consumer and business loans to rural and peri-urban households in India that otherwise have difficulty accessing affordable financial services.
Elevar Equity backed the Mumbai-based company’s $35 million Series C round alongside Temasek, Elevation Capital and TVS Capital.
SarvaGram uses a physical branch and partner network underpinned by a credit-scoring and loan management tech platform to reach underbanked households in more than 8,000 villages. The company offers comprehensive financial services to its customers, including home loans, farm and small business loans, and personal loans for important expenses like weddings.
More than 80% of its borrowers are women.
Financial services have reached an “inflection point in rural markets as demonstrated by growing economic activity and aspirations seen across rural households,” Elevar’s Jyotsna Krishnan told YourStory.
SarvaGram says financial services for India’s rural households is a $400 billion market. Elevar estimates the market will grow to $10 trillion in the next decade.
Elevar Equity first invested in SarvaGram shortly after it launched in 2019 and has since participated in every equity round.