Optimo Loan, a pioneering MSME lending-tech business for rural India, announced today that it has raised USD 10 million in seed funding. The round was led by Blume and Omnivore, with additional contribution from Optimo’s Founder, Prashant Pitti.
Optimo aims to bridge the USD 530 billion credit gap in MSME lending, by facilitating access to quick, hassle-free, and flexible financing options for MSMEs. With this investment, Optimo aims to revolutionize MSME lending in rural India by leveraging cutting-edge technology and a phygital distribution model. The startup is building a co-lending platform for MSMEs with a unique underwriting method. The novel approach allows Optimo to gain deeper insights into the financial health of MSMEs, enabling informed lending decisions and catalyzing entrepreneurship and economic growth in rural communities.
Optimo was founded by Prashant Pitti, an alumnus of IIT-Madras and an experienced entrepreneur. He is most well-known for co-founding EaseMyTrip, India’s only bootstrapped startup to achieve unicorn status and go public. Prior to his entrepreneurial ventures, he worked with prominent financial institutions in the United States such as Capital One and HSBC. The startup aims to use the acquired funds to expand its operations, enhance its technology, recruit new talent, and broaden its presence to twenty locations in rural India by the end of this year.
Speaking about the funding round, Prashant Pitti, Founder of Optimo stated, “I am excited to embark on this lending-tech venture, which I am running alongside EaseMyTrip. 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. We aim to establish an asset-light company by primarily leveraging co-lending agreements with banks and larger NBFCs.”
Ashish Fafadia, Partner at Blume Ventures, said, “We believe in Optimo’s mission to democratize access to finance for MSMEs in rural India, especially considering their significant contribution of 29% to GDP. To achieve the ambitious goal of elevating this contribution from 4 to 15 trillion over the next 15-20 years, it’s imperative to explore more effective collaboration avenues. Prashant’s rich expertise and network will be invaluable in navigating towards this mission”.
Reihem Roy, Partner at Omnivore, observed, “Optimo’s innovative lending technology model holds the potential to make a substantial impact and foster enduring change in underserved communities. India faces a significant credit deficit, with only 25% of all MSMEs having accessed formal loans to date, leaving 53 million businesses untapped and holding immense opportunity”.
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About OPTIMO
Headquartered in Bangalore, at Optimo Loans, the team is dedicated to creating a positive social impact and fostering financial inclusion in the small business community. The company’s financing solutions are meticulously designed to empower businesses, irrespective of their size or background, to achieve their growth ambitions and drive economic progress. Through its finance solutions, Optimo Loans supports businesses in investing in new technologies, increasing liquidity, and ensuring business continuity. By empowering businesses to expand and flourish, the company actively contributes to local job creation, economic growth, and community development.
The commitment to financial inclusion remains at the core of Optimo Loans’ mission. The team understands the crucial importance of accessing finance for businesses’ success. Therefore, they adopt a customer-centric approach, providing flexible solutions to meet diverse needs and empower underserved entrepreneurs.
OPTIMO Loans is dedicated to revolutionizing MSME lending in rural India and assisting businesses like yours in thriving.
About Blume Ventures
Blume Ventures is an early-stage India-focused venture fund that backs startups with both funding as well as active mentoring. Blume typically invests in Seed and pre-Series A rounds in tech-led startups led by founders obsessed with solving hard problems for the Indian market and from India for the world.
Blume presently invests out of Fund IV, a $300M vehicle supported by leading institutional LPs and family offices. With the close of Fund IV, Blume now has an AUM (Assets Under Management) of over $600m, managed by an investment team based across Bengaluru, Mumbai, Delhi, and San Francisco. To know more, visit: https://blume.vc/
About Omnivore
Omnivore is a venture capital firm, based in India, which funds entrepreneurs building the future of agriculture, food systems, and rural economy. Omnivore is currently investing from its third fund, the Omnivore Agritech & Climate Sustainability Fund, that announced its first close at $150 million last year. Including this fund Omnivore now has an AUM of over $350 million.
