Chennai-based non-banking financial company (NBFC) startup GrowXCD Finance is preparing to raise USD 22.7 Mn (~INR 200 crore) in its Series B funding round, led by Swiss-based Blue Earth Capital with participation from Prosus and existing backers Lok Capital and UC Impower. This fresh capital marks a significant milestone for the young fintech firm, founded in 2022 by Arjun Muralidharan and Sathish Kumar Vijayan.
Structure of the Series B Round
According to industry reports, GrowXCD’s board has approved the issue of 1,56,92,344 Series B CCCPS at a price of INR 127.61 each, aggregating to INR 200.25 crore.
- Blue Earth Capital will contribute the largest tranche of USD 12 Mn (~INR 105 crore).
- Prosus is set to invest USD 7.9 Mn (~INR 69.4 crore).
- Lok Capital, already the largest shareholder, will add another USD 2.4 Mn (~INR 21.3 crore).
- UC Impower is pitching in INR 4.26 crore, while an individual investor, Anshul Agarwal, will contribute INR 25 Lakh.
Simultaneously, GrowXCD has expanded its ESOP pool by adding 10,00,000 options worth INR 12.76 crore, bringing the total pool size to approximately INR 43 crore.
Valuation Surge and Investor Stakes
With this round, GrowXCD’s valuation has nearly tripled, touching USD 71.5 Mn (~INR 630 crore), compared to INR 215 crore during its pre-Series B funding. Following the latest allotment:
- Blue Earth Capital will hold a 16.7% stake,
- Prosus will command 11.04%,
- Lok Capital remains the largest shareholder with 30.84%,
- while UC Impower strengthens its presence with the fresh infusion.
Before this round, GrowXCD had raised around USD 12 Mn in funding.
Recent Pre-Series B and Series A Investments
Earlier in 2025, GrowXCD secured INR 50 crore in a pre-Series B round. Of this, Lok Capital invested INR 20 crore, taking its cumulative exposure to INR 70 crore, while UC Impower contributed INR 30 crore. The capital was earmarked for expanding GrowXCD’s portfolio and tapping into underserved rural and semi-urban MSME markets across Tamil Nadu, Karnataka, and Andhra Pradesh.
This followed the company’s Series A round in November 2023, where it raised INR 50 crore (USD 6 Mn) led by Lok Capital. The impact-driven investor expressed strong confidence in GrowXCD’s progress, citing impressive growth and impact delivery since its early stages. UC Impower, incubated by Unitus Capital, also emphasized its long-term support philosophy, with a holding horizon of five to seven years.
Business Model and Offerings
Founded with a mission to bridge the credit gap in underserved markets, GrowXCD Finance provides loans to micro, small, and medium enterprises (MSMEs) as well as low-income households. Its core products include:
- Small property-backed mortgage loans targeted at households, branded as GrowShubam.
- Short-term unsecured business loans for MSMEs, branded as GrowVyapaar.
Since launching operations in June 2023, GrowXCD has built a portfolio of INR 130 crore, with plans to scale this to INR 500 crore by March 2026. The company maintains a strong presence in Tier II and Tier III cities across southern India, a market often neglected by mainstream financiers.
Financial Performance
GrowXCD’s financials mirror its aggressive growth trajectory. For the fiscal year ending 31 March 2025, the NBFC’s revenue surged more than sevenfold to INR 27 crore, up from INR 3.73 crore in FY24. However, this growth came at the cost of widening losses, which increased to INR 8.17 crore during the same period.
The company’s net worth now stands at approximately INR 110 crore following its recent fundraises, underlining a strengthened balance sheet to fuel its ambitious expansion.
The Road Ahead
GrowXCD’s Series B round underscores the strong investor appetite for India’s impact-driven fintech lending space, particularly in segments catering to MSMEs and low-income households. With deep-pocketed global and domestic investors on board, the company is poised to accelerate its lending portfolio, strengthen its technology backbone, and capture a larger share of the southern Indian credit market.
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