India’s MSME sector is the backbone of the economy, contributing roughly 30 % of GDP and employing over 110 million people. Yet chronic credit gaps remain. Traditional banks are often risk-averse; informal lenders are prohibitively expensive. In this void, NBFC startups are emerging as the new frontier, combining technology, alternative data, and customer-centric credit models to bring finance to underserved small enterprises. Below is a curated view of ten NBFC innovators driving this revolution across India.
1. SK Finance Limited (SK Finance)
City: Jaipur
Founding Date: 21 Nov 1994
FY 2024 Revenue: ₹1797.95 Cr
Latest Valuation: ₹7,713.38 Cr (as of 14 Mar 2024)
Founders: Rajendra Kumar Surana & Sanjay Surana
Company Overview:
Rooted in Rajasthan, SK Finance has built deep relationships in semi-urban and rural markets, focusing on vehicle and SME lending rather than chasing saturated metros. Their product mix spans commercial vehicles, tractors, and working capital for small enterprises. With branch networks augmented by lean tech tools, they balance traditional trust-driven outreach and digital efficiencies. Their credit underwriting is locally informed and risk-calibrated for underserved geographies. Over time, SK Finance has carved a niche as a trusted rural and semi-urban NBFC player, bridging institutional financing to grassroots entrepreneurs.
2. InCred Financial Services (InCred Finance)
City: Mumbai
Founding Date: 03 Feb 1995
FY 2024 Revenue: ₹ 1293.10 Cr
Latest Valuation: ₹ 8,693.87 Cr (as of 22 Dec 2023)
Founder: Bhupinder Singh
Company Overview:
InCred is a digitally native lender built on advanced analytics, machine learning, and alternative data sources to shape credit decisions. Their product suite spans consumer finance, education loans, SME lending, and structured credit. The firm emphasizes personalization over one-size-fits-all credit, tailoring terms based on sophisticated risk insights. Backed by strategic capital, InCred is scaling aggressively across both salaried and business segments. Their hybrid model, blending tech agility with capital strength, is reshaping how modern credit is delivered in India.
3. Lendingkart Finance Limited (Lendingkart Finance)
City: Ahmedabad
Founding Date: 26 Dec 1996
FY 2024 Revenue: ₹1146.45 Cr
Latest Valuation: ₹ 1,783.82 Cr (as of 11 Sep 2019)
Founders: Harshvardhan Lunia & Mukul Sachan
Company Overview:
Lendingkart was among the earliest NBFCs to fully embrace digital, collateral-free lending to SMEs, especially those in Tier-2 and Tier-3 cities. Its proprietary credit models analyze over 5,000 data parameters from transaction history to business metadata for fast decisions. Loans can be approved in under 72 hours, making the platform a go-to for small businesses needing quick capital. Their focus on scalability, automation, and risk-calibrated pricing has made Lendingkart a pioneer of fintech-led SME credit. Despite valuation adjustments, the firm continues to shape how data-driven underwriting reaches underserved regions.
4. Vivriti Capital Limited (Vivriti Capital)
City: Chennai
Founding Date: 22 Jun 2017
FY 2024 Revenue: ₹ 1110.40 Cr
Latest Valuation: ₹ 12,252.99 Cr (as of 04 Nov 2023)
Founders: Gaurav Kumar & Vineet Agarwal
Company Overview:
Vivriti Capital is a debt-innovator, connecting mid-market enterprises to institutional capital through tailored financing solutions. It structures bespoke debt products, supply chain finance, securitizations, and credit overlays that go beyond vanilla lending. Its platform-first approach uses deep analytics to align investor appetite with SME credit needs. In doing so, Vivriti acts not just as a lender but as a conduit between capital markets and fast-growing businesses. Its hybrid positioning enables it to finance risks that traditional lenders often avoid.
5. Aye Finance Limited (Aye Finance)
City: New Delhi
Founding Date: 12 Aug 1993
FY 2024 Revenue: ₹ 1071.76 Cr
Latest Valuation: ₹ 3,349.40 Cr (as of 26 Sep 2024)
Founders: Sanjay Sharma & Vikram Jetley
Company Overview:
Aye Finance targets small and micro enterprises often left out of formal banking, think local kirana shops, repair shops, and artisan clusters. They adopt cluster-based underwriting models to capture cash-flow patterns (e.g., for textile workers or small manufacturers) and customize credit accordingly. By combining domain-specific insights with technology, Aye offers both working capital and growth loans at scale. With support from impact capital and institutional backers, Aye walks the line between social mission and financial viability, pushing inclusion deeper into hard-to-reach markets.
6. Clix Capital Services Private Limited (Clix)
City: New Delhi
Founding Date: 11 Feb 1994
FY 2024 Revenue: ₹971.40 Cr
Latest Valuation: ₹ 2,527.35 Cr (as of 23 Nov 2020)
Founders: Pramod Bhasin & Anil Chawla
Company Overview:
Born out of the legacy of GE Capital, Clix Capital blends institutional-grade rigor with fintech speed. They operate across segments like healthcare finance, education lending, and SME credit, thereby diversifying risk across verticals. Their approach is to pair sector specialization with digital processes, enabling them to underwrite nuanced segments with better controls. Clix’s hybrid model gives it credibility with both institutional partners and SMEs that demand reliability and speed. Over time, it has positioned itself as a credible alternative financing platform beyond traditional banks.
7. Oxyzo Financial Services Limited (Oxyzo)
City: Gurgaon
Founding Date: 21 Sep 2016
FY 2024 Revenue: ₹ 904.12 Cr
Latest Valuation: ₹ 7,163.39 Cr (as of 06 Aug 2022)
Founders: Ruchi Kalra & Asish Mohapatra
Company Overview:
Oxyzo is deeply integrated with supply chain data via its parent ecosystem, OfBusiness, giving it real-time visibility into SME procurement cycles. It offers working capital, purchase financing, and tailored credit products optimized for B2B flows. This data advantage reduces uncertainty, enabling more competitive pricing and faster decisions. With strong unit economics and aggressive scaling, Oxyzo is emerging as a leading “lending arm” for industrial and trading SMEs. It exemplifies how platform-driven insights can transform credit delivery in product-heavy sectors.
8. Kinara Capital Private Limited (Kinara Capital)
City: Bengaluru
Founding Date: 03 Dec 1996
FY 2024 Revenue: ₹ 722.60 Cr
Latest Valuation: ₹ 1,012.98 Cr (as of 28 Sep 2022)
Founder: Hardika Shah
Company Overview:
Kinara Capital is a women-led NBFC dedicated to serving micro and small businesses, particularly women entrepreneurs in Tier-2 and Tier-3 towns. Their focus on socially inclusive lending is matched with AI-driven credit scoring and mobile-first lending workflows. Kinara emphasizes ease, transparency, and last-mile reach, working closely with local communities. The firm also integrates impact metrics within lending decisions, aiming to drive both financial and social returns. With such a model, Kinara is a frontline champion of inclusive finance.
9. Credavenue Private Limited (Yubi)
City: Chennai
Founding Date: 21 Aug 2020
FY 2024 Revenue: ₹ 561.77 Cr
Latest Valuation: ₹ 11,004.84 Cr (as of 31 Mar 2024)
Founder: Gaurav Kumar
Company Overview:
Yubi (formerly CredAvenue) is reshaping debt markets via a digital marketplace that connects borrowers, lenders, and institutional investors. It facilitates co-lending, securitization, supply chain finance, and structured debt products, particularly for SMEs and NBFCs. By digitizing complex transactions, Yubi brings transparency, speed, and scale to debt capital markets. Its platform-driven architecture enables users to transact swiftly and efficiently. In effect, Yubi is building the plumbing of modern credit markets, making capital more accessible across the ecosystem.
10. Neogrowth Credit Private Limited (NeoGrowth)
City: Mumbai
Founding Date: 17 May 1993
FY 2023 Revenue: ₹ 601.41 Cr
Latest Valuation: ₹ 994.64 Cr (as of 07 Dec 2022)
Founders: Piyush Khaitan & Rajesh Thakkar
Company Overview:
NeoGrowth pioneered leveraging digital payments and POS data to underwrite SMEs, especially retail merchants and micro enterprises. Their core offering is merchant cash advance loans, where future card/swipe transactions serve as collateral. This model bypasses the need for heavy paperwork and asset attachments, making credit accessible for small shop owners and restaurants. NeoGrowth blends real-time payments data and behavioral analytics in decisions. Over time, they have carved a niche in metro and Tier-1 markets, bridging the frontier between fintech and retail credit.
Conclusion
The SME credit landscape in India is undergoing a fundamental transformation, driven not by traditional banks but by agile, tech-first NBFC startups. These innovators are redefining credit access through AI-enabled underwriting, alternative data models, and deep customer insights. From impact-led lenders like Aye Finance and Kinara to platform disruptors like Yubi and Oxyzo, and regional champions like SK Finance, each is reshaping the contours of SME finance.
This analysis has been prepared using verified financials and valuation data from PrivateCircle Insights, helping you decode India’s emerging NBFC leaders and stay ahead of market trends before they hit the headlines.