Optimo Capital Secures Major Funding and Partnership to Boost MSME Lending
Mumbai-based Optimo Capital, a technology-driven non-banking financial company (NBFC) specializing in micro, small, and medium enterprise (MSME) lending, has announced two significant developments to expand its financial services. The company has secured Rs 100 crore in funding from Punjab National Bank (PNB) and has entered into a co-lending partnership with Godrej Finance, aiming to disburse Rs 200 crore over the next 12 months.
Strategic Moves to Address India's MSME Credit Gap
This development follows Optimo Capital's equity funding round six months ago, where it raised Rs 150 crore led by Blume Ventures and Omnivore, with participation from founder Prashant Pitti. The company focuses on loan-against-property (LAP) financing for MSMEs, a segment where many entrepreneurs face challenges in accessing timely credit despite having collateral. Optimo leverages its technology-driven lending infrastructure to streamline this process.
Currently, Optimo Capital manages over Rs 430 crore in assets under management (AUM) and maintains gross non-performing assets (NPAs) below 0.7%. The company claims to have been profitable since its inception, generating Rs 2-3 crore in profit every month.
Founder's Vision for MSME Financing
Prashant Pitti, Founder of Optimo Capital, highlighted the critical need for such initiatives. "India's MSME sector continues to face a $240 billion credit gap, despite many businesses having strong collateral," he said. "By combining technology with disciplined underwriting, we aim to deliver faster and safer credit access for entrepreneurs across India."
The partnership with Godrej Finance and funding from PNB are expected to enhance Optimo's lending capacity, enabling it to serve more MSMEs efficiently. This move aligns with broader efforts to support India's economic growth by empowering small businesses with necessary financial resources.
