Fintech startup FinAGG Technologies has raised $11 million in its Series A round of funding led by co-led by global impact investment manager BlueOrchard and Tata Capital Limited.

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Small Industries Development Bank of India (SIDBI) and existing investor Prime Venture Partners also took part in the fresh round.

Apart from this, FinAGG secured an additional half a million dollars from Gray Matter Capital through Non-Convertible Debentures (NCDs) to empower women entrepreneurs financially, FinAGG's spokesperson told Zeebiz.com.

FinAGG will utlise the funding towards expanding its offline and online presence, enhancing global outreach, and driving product innovation, the company said in a press note today, January 18.

Commenting on the investment, Rajiv Sabharwal, the MD & CEO of Tata Capital, said," Our existing partnership with FinAgg in the SME supply chain has been successful, showcasing promising traction. We value FinAgg's tech-driven efficiency and focus on distributor finance access. Excited about our continued collaboration, we anticipate a fruitful partnership and are committed to supporting FinAgg's next phase of growth. Together, we aim to drive innovation and excellence in the evolving landscape of financial services."

FinAGG was founded in 2019 and claims to be one of the leading innovators in the MSME Cash Flow financing space. It is one of the few companies to have completed both the RBI and IFSCA sandboxes, having pioneered the usage of OCEN and GST Sahay for supply chain finance. The platform is integrated with India Stack's Aadhar, GSTN, UPI, NACH, and other services, allowing lenders to access expansion capital quickly and seamlessly.

Since 2020, they've onboarded significant consumer brands and are presently working with over 25 companies, including key banks, NBFCs, and businesses that promote MSME growth in India.

"FinAGG's innovative model employs technology to seamlessly provide cost-effective loans to MSMEs. Rapidly becoming a premier partner to blue-chip companies in FMCG, consumer electronics, and building materials, FinAGG gains access to millions of Indian MSMEs. Our collaboration with FinAGG is aimed at enhancing financial service accessibility, propelling growth, and fortifying the resilience of the vulnerable MSME sector in India," said Mahesh Joshi, head of private equity investments- Asia at BlueOrchard.

In the tech startup space, International Battery Company (IBC), a product and technology company that specialises in the creation of eco-friendly, large-sized rechargeable Prismatic Li-ion NMC batteries, also announced to raise $35 million funding led by RTP Global, an early-stage venture capital firm. Besides this, manufacturing and automation startup Groyyo has also secured Rs 40 crore (USD 5.4 million) from global investment institutions Lighthouse Canton and Trifecta Capital in a debt funding round, which it concluded recently.