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SarvaGram Fincare Private Limited (SFPL), a rural-focused fintech lender, has reported a robust 74% year-on-year growth in total income for FY25, reaching Rs 274 crore. However, the company’s standalone net profit declined to Rs 4.89 crore from Rs 7.56 crore in FY24, reflecting the pressure of rising credit provisioning and employee expenses. The performance underscores the duality of aggressive expansion and the challenges of maintaining profitability in India’s rural lending landscape.
Key Performance Highlights
- Total income rose from Rs 158 crore in FY24 to Rs 274 crore in FY25
- Standalone net profit fell to Rs 4.89 crore, down 35% from Rs 7.56 crore
- Consolidated income of parent SarvaGram Solutions reached Rs 309 crore, up from Rs 181 crore
- Consolidated net loss widened to Rs 61 crore from Rs 20 crore
- Total managed assets surged 60% year-on-year to Rs 2,136 crore
Operational Expansion and Lending Strategy
SarvaGram’s growth is driven by its household-centric lending model, which evaluates the financial capacity of entire rural households rather than individual borrowers.
- Customer segments include salaried individuals, farmers, and MSMEs
- Loan offerings span gold, housing, personal, farm, and consumer durable credit
- Borrowers include dairy farmers, landowners, and small-scale entrepreneurs such as kirana store owners, pharmacists, and handicraft artisans
- The company’s franchise network of Sarvamitras supports distribution of non-lending services like insurance and farm mechanisation
Credit Costs and Profitability Challenges
Despite strong top-line growth, profitability was impacted by higher credit provisioning and operational expenses.
- Rising credit costs reflect the inherent risk in rural lending and portfolio seasoning
- Employee costs increased due to network expansion and tech investments
- SarvaGram Solutions, the parent entity, continues to operate at a loss, with FY25 net loss at Rs 61 crore
Funding and Capital Position
SarvaGram has attracted significant investor interest, helping bolster its capital base.
- Raised Rs 565 crore in Series D funding in November 2024, led by Peak XV Partners
- Existing investors Elevar Equity, Elevation Capital, Temasek, and TVS Capital also participated
- Total capital raised to date stands at Rs 950 crore
- Strengthened net worth and reduced gearing expected to support future growth
Market Position and Strategic Outlook
SarvaGram is positioning itself as a leading player in India’s rural fintech space, targeting the underbanked but
creditworthy segment.
- Focus remains on expanding rural footprint and doubling AUM
- Plans to improve operational efficiency and manage asset quality
- Continued emphasis on tech-driven underwriting and risk management
- Long-term goal is to balance growth with sustainable profitability
Conclusion
SarvaGram Fincare’s FY25 results reflect a company in transition—scaling rapidly in underserved markets while grappling with the financial realities of credit risk and operational overhead. With a strong capital base and differentiated lending model, the company is well-placed to deepen its rural reach. However, the road ahead will require sharper focus on cost control, portfolio quality, and strategic execution to convert growth into lasting profitability.
Source: Moneycontrol
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