Since inception, the company has raised roughly Rs 477 crore in equity, with investors including TVS Capital, Lok Capital, Evolvence Equity Partners, and Paragon Partners. Founder-CEO Vivek Bansal holds 49%, while institutional investors account for about 35.5% of equity, indicating strong alignment between management and capital partners.
The rating rationale was SFCPL’s healthy capitalisation, robust investor backing, and experienced management team.
Founder-CEO Vivek Bansal said, “Securing an A- rating from ICRA in our first year validates our governance, risk framework, and execution capabilities, reflecting investor and lender confidence in our approach to MSME lending.”
Saarathi Finance started lending operations in April 2025 and reported assets under management (AUM) of approximately Rs280 crore as of December 31, 2025. The portfolio largely includes secured business loans backed by mortgage, with 15–20% exposure to unsecured business loans expected over the medium term. The company operates 62 branches across six states such as Uttar Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu and aims to expand to 70–75 branches by March 2026.
ICRA in the report said the company’s operations are at a nascent stage, with high initial expenses from building systems, processes, and manpower. SFCPL posted net losses of Rs3.4 crore in FY25 and Rs4.4 crore in H1FY2026, largely due to startup costs, including a one-time Rs3.5 crore stamp duty. Fee-based income from debt syndication and loan collections currently supports earnings until core lending stabilises.
The agency also highlighted that SFCPL’s ability to scale operations profitably while maintaining resilient asset quality, along with a well-diversified funding profile, will be key to sustaining the rating. Liquidity remains adequate, with Rs389 crore in cash and investments and unutilized credit lines of Rs152 crore, it said.