NBFC Saarathi Finance has earned an A- (Stable) rating from ICRA in its first year, signaling strong capitalization, resilient business model, and high-quality investor backing. Following a Rs 477 crore equity round in May 2025 led by marquee funds, the MSME-focused lender is poised to scale responsibly with robust governance.
Saarathi Finance and Credit Pvt. Ltd. has secured an A- (Stable) long-term rating from ICRA, a prominent Indian rating agency affiliated with Moody’s, underscoring the NBFC’s sound fundamentals within a year of operations. The rating reflects healthy capitalization, prudent risk practices, and credible sponsorship—a notable achievement for a young lender.
The company raised Rs 477 crore in May 2025 from investors including TVS Capital, Lok Capital, Evolvence Equity Partners, and Paragon Partners, strengthening growth capacity and balance sheet resilience. With a core focus on MSME financing, Saarathi aims to combine speed and credit discipline while expanding responsibly across key markets.
Notable updates and major takeaways
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Rating milestone: Assigned A- (Stable) by ICRA within first operational year.
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Capital strength: Rs 477 crore equity fundraise completed in May 2025.
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Investor quality: Backed by TVS Capital, Lok Capital, Evolvence, Paragon Partners.
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Focus area: Lending to micro, small, and medium enterprises (MSMEs).
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Credibility boost: ICRA’s endorsement enhances market confidence and funding access.
Conclusion
An A- (Stable) from ICRA gives Saarathi Finance a credibility edge in MSME lending, validating its governance, capitalization, and growth plans—key pillars for scaling sustainably in India’s competitive NBFC landscape.
Sources: PTI News; Rediff Moneynews; ICRA