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Optimo Loan Raises $10 Million to Bridge Credit Gap for Rural Small Businesses in India

Optimo Loan, a lending startup focused on small businesses, has secured $10 million in its first equity fundraising round. The funding aims to address the significant credit gap faced by Micro, Small and Medium Enterprises (MSMEs) in rural India.


Prashant Pitti, the founder of Optimo Loan and co-founder of travel platform EaseMyTrip, brings his experience from financial institutions like Capital One and HSBC to this new venture. Optimo Loan combines technology with a physical presence (phygital model) to reach MSMEs often overlooked by traditional banks. Their unique underwriting method promises deeper insights into borrowers' financial health, enabling responsible lending decisions.


The $10 million fundraise, led by Blume Ventures and Omnivore with additional investment from Pitti himself, will fuel Optimo Loan's expansion plans. They aim to broaden their MSME lending portfolio, enhance their technology, recruit talent, and establish a presence in 20 rural locations by year-end. Optimo Loan focuses on building an asset-light model through co-lending agreements with banks and larger NBFCs (Non-Banking Financial Companies).


Optimo Loan caters to a specific need. As traditional banks become more cautious with consumer lending, the MSME sector presents a significant opportunity. With only 25% of MSMEs having access to formal credit, Optimo Loan positions itself to fill this gap. Their focus on rural India and unique underwriting method differentiates them from competitors like Indifi and FlexiLoans.

Optimo Loan's mission is to foster financial inclusion and empower rural small businesses in India. By providing financial solutions for new technologies, improved cash flow, and business continuity, Optimo Loan looks to make a positive social impact.

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