Optimo Loan Raises $10M in Seed Funding to Enhance MSME Lending

Optimo Loan, an MSME lendingtech platform, has secured $10 million (approximately INR 83 crore) in its seed funding round, co-led by Blume Ventures and Omnivore, with additional investment from co-founder Prashant Pitti.

The funding will be used to bolster Optimo Loan’s MSME lending portfolio in rural India by leveraging technology and a phygital distribution model. The startup also plans to use the funds to expand its operations, enhance its technology infrastructure, recruit new talent, and extend its presence to 20 locations in rural India by the end of this year.

Founded by Prashant Pitti, co-founder of traveltech major EaseMyTrip, Optimo Loan aims to create a positive social impact and promote financial inclusion in the small business community.

Optimo claims to be developing a co-lending platform for MSMEs with a unique underwriting method. This approach will provide deeper insights into the financial health of MSMEs, enabling informed lending decisions that will drive entrepreneurship and economic growth in rural communities.

Optimo supports businesses through its finance solutions, including backing new technologies, increasing liquidity, and ensuring business continuity. By empowering businesses to expand and thrive, the startup aims to actively contribute to local job creation, economic growth, and community development.

Pitti stated, “Optimo lending operations commenced in November 2023, and we are scaling swiftly yet prudently. Our top management team comprises individuals with extensive experience of 10-15 years in MSME lending.”

Ashish Fafadia, partner at Blume Ventures, expressed belief in Optimo’s mission to democratize access to finance for MSMEs in rural India, especially considering their significant contribution of 29% to GDP. Fafadia emphasized the importance of effective collaboration to elevate this contribution from 4 to 15 trillion over the next 15-20 years, highlighting Pitti’s expertise and network as invaluable assets for achieving this mission.

Optimo Loan faces competition in the MSME lending space from players such as indifi and FlexiLoans.

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• Source: https://timesnext.com/optimo-loan-raises-10m-seed-funding-enhance-msme-lending/