Azim Premji's Premji Invest leads up to $105M in AI lender Vegafin
Premji Invest, the family office of Wipro founder Azim Premji, is leading an investment of up to ₹1,000 crore ($105 million) in Vegafin, a lender that plans to use artificial intelligence to speed up loans to India’s small businesses.
U.S. venture firm Norwest and impact investor Lok Capital are also putting up money. The value of each investor’s share and Vegafin’s valuation were not disclosed.
Vegafin will use the capital to buy a majority stake in Bizloan, a Gurugram-based non-bank lender to micro, small and medium-sized enterprises. The companies have signed definitive agreements for the deal.
Bizloan was founded in 2018 and makes secured loans through more than 35 branches in five states. It has assets under management of more than ₹235 crore ($24.8 million).
The deal gives Vegafin a working loan book and a branch network from the start. Its management has said buying Bizloan saves 18 to 24 months compared with building a lender from scratch.
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Vegafin was founded by Bijith Bhaskar, who held senior roles at ICICI Bank and Premji Invest. The company plans to pair AI-driven credit checks, digital paperwork and data from outside traditional credit files with staff on the ground in branches.
It will target loans of ₹8 lakh to ₹30 lakh ($8,400 to $31,600) to businesses such as neighborhood grocery stores and local pharmacies, and aims to triple its assets under management within 12 to 18 months.
India’s small businesses face a credit gap of more than ₹30 lakh crore ($316 billion), Vegafin estimates, the difference between what they need to borrow and what banks and other lenders supply.
“Backing lenders of this kind can strengthen small businesses, which make up a large part of India’s economy,”
said Saravanan Nattanmai, the partner who leads financial services investments at Premji Invest. Kaustubh Jhaveri, a vice president at the firm, pointed to Vegafin’s access to capital, experienced management and distribution reach.
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