Optimo Capital Secures Rs 150 Crore In Series A Funding To Support Small Businesses In India

Optimo Capital has successfully secured Rs 150 crore ($17.5 million) in series A funding. This round was led by founder Prashant Pitti, with support from existing investors Blume Ventures and Omnivore. The company aims to address the challenges faced by small-business owners in India who lack credit history, making it difficult for them to obtain significant business loans from banks or NBFCs.

Many of these entrepreneurs own valuable assets like homes or shops, which are often underutilised. Optimo allows them to use these properties as collateral, enabling access to larger loan amounts at lower interest rates compared to unsecured loans. This approach provides a practical solution for small-business owners seeking financial support.

Innovative Loan Processing

Optimo utilises 77 lakh digital land records and AI-driven processes for swift property valuation and title verification. This technology enables the company to offer in-principle approvals within hours and disburse loans in less than a week, a process that traditionally takes four to six weeks. This efficiency is a significant advantage for entrepreneurs needing quick access to funds.

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

Unlocking India's Wealth

"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 raised 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.