Vivek Bansal and Sunil Daga to Launch MSME-Focused NBFC, Saarathi Finance

Vivek Bansal, Group CFO at InCred, and Sunil Daga, President at Kotak Mahindra Bank, are set to launch Saarathi Finance, an MSME-focused NBFC, after completing their notice periods. Saarathi Finance, registered in August and based in Mumbai, has applied for an NBFC license from the RBI and is in talks to raise Rs 600 crore in equity, aiming for a valuation of Rs 1,000 crore. Both Bansal and Daga are expected to contribute to the funding.

The venture will target MSMEs, providing secured loans ranging from Rs 5-20 lakhs and unsecured personal loans for salaried individuals between Rs 1-5 lakhs. Saarathi plans to use a digital-first approach via a super app, positioning itself alongside players like Bajaj Finserv and Lendingkart. It also plans to partner with fintechs for co-lending.

With a huge credit gap of Rs 92 trillion among MSMEs, the sector presents significant growth potential. Both leaders bring extensive experience in SME lending, with Bansal’s background in financial management and Daga’s expertise in building Kotak’s MSME working capital division. The NBFC aims to capitalize on the growing demand for MSME credit in India.