Optimo Capital Secures Rs 150 Crore in Series A Funding to Support Small-Business Owners in India

Optimo Capital has successfully raised Rs 150 crore ($17.5 million) in its series A funding round. This funding was led by founder Prashant Pitti, with contributions from existing investors Blume Ventures and Omnivore. The company focuses on helping small-business owners in India who struggle to secure substantial loans due to a lack of credit history.

Many entrepreneurs possess valuable assets like homes or shops that are often underutilised. Optimo enables these business owners to use their properties as collateral, allowing them access to larger loans at lower interest rates compared to unsecured loans. This strategy provides a practical financial solution for small-business owners.

Optimo employs 77 lakh digital land records and AI-driven processes for quick property valuation and title verification. This technology allows the company to offer in-principle approvals within hours and disburse loans in less than a week, compared to the traditional four to six weeks. This efficiency is crucial for entrepreneurs needing rapid access to funds.

In just 18 months, Optimo has built a loan book worth Rs 350 crore and expanded its operations across 56 cities in Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Madhya Pradesh. With a workforce of 480 employees, the company achieved profitability within three months of its inception and has maintained this status for over 15 months.

"Optimo is unlocking India's biggest asset (53% of nation's wealth), its land & property, by allowing property-owners to quickly get secured-loans," said Prashant Pitti, Founder & MD. "India's Mortgage-to-GDP ratio is just 9% versus above 50% in developed economies, clearly we are not utilising our biggest wealth to grow our GDP faster," he added.

The company has also secured Rs 110 crore in debt from IDFC and Axis Bank. Several PSU banks and large NBFCs are expected to join as debtors or co-lending partners soon. These partnerships will further strengthen Optimo's financial position and expand its reach within the Indian market.

Future Expansion Plans

The newly acquired funds will be used to enhance Optimo's technology infrastructure and AI capabilities. Additionally, the company plans to expand its co-lending partnerships and increase its presence across tier-3 cities in India. This expansion aims to bridge the $530 billion credit gap that exists within the Indian ecosystem.