SSA Finserv Pvt Ltd, a non-banking financial company that focuses on micro, small and medium enterprises (MSMEs), has raised $3 million (nearly Rs 22 crore) in its first institutional funding round.
The Mumbai-based company has raised this capital from Blue Ashva Sampada Fund, managed by India and Singapore-based investment firm Blue Ashva Capital.
Blue Ashva Capital now holds a majority stake in SSA Finserv as a result of this investment. This development comes a week after the firm announced an investment of Rs 10 crore (around $1.36 million) in Devic Earth, a startup that focuses on air pollution control.
SSA Finserv was set up in June 2019 by Vikas Agarwal. It provides financial solutions for cash flow needs of MSMEs.
Some of its products include collateral-free business loans, collateral backend business loans, finance against work orders, and sales bill discounting.
The firm will use the capital it has raised to expand its lending operations in Tier-I and Tier-II Cities, as well as to enhance its network, it said in a statement.
The Blue Ashva Sampada Fund marked its first close in July last year, receiving commitments of Rs 454 crore (around $60.86 million) from limited partners (LPs) including family offices and high net-worth individuals (HNIs).
The vehicle -- registered with the Securities and Exchange Board of India as a Category-II alternative investment fund -- has a target corpus of Rs 400 crore with a greenshoe option of Rs 200 crore.
Blue Ashva Capital had said the fund would aim to invest in small and medium-sized enterprises in sectors such as financial services, healthcare, consumer, and manufacturing. Investments would be made via debt, equity, or a combination of the two.