Based in Chennai, non-banking financial company GrowXCD Finance, co-founded by Arjun Muralidharan in 2022, has raised ₹200 crore in fresh equity funding. The round was led by Blue Earth Capital and included participation from Prosus Ventures as well as existing backers Lok Capital and UC Impower. Seed-plus: This is GrowXCD’s second equity raise in 2025 and highlights investor confidence in the company’s business model and growth plan.
A closer look at the investors
Blue Earth Capital took the lead with the largest share of the investment, while Prosus Ventures came in as a strong partner. Lok Capital, an early backer of GrowXCD since 2023, doubled down on its commitment with additional capital, and UC Impower also followed on with support. Lok Capital now stands as the largest institutional shareholder in the company.
Founder’s vision for the company
In his public remarks, Arjun Muralidharan explained that the fresh funds will be channeled into three major areas: expanding the branch network, strengthening the technology infrastructure, and growing the loan book targeted at small businesses and salaried borrowers. According to him, the capital should comfortably sustain GrowXCD’s operations for the next 12 to 18 months, while also laying the groundwork for the next phase of expansion.
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Where the company stands today
In just three years, GrowXCD has carved out a niche as a lender to micro, small, and marginal enterprises (MSMEs) and salaried individuals in tier-II and tier-III towns. As of now, it operates over 60 branches across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Puducherry. The company’s assets under management (AUM) are estimated at around ₹300 crore, with a publicly stated target of touching ₹500 crore by March 2026.
Expansion goals and new markets
Looking ahead, GrowXCD has made it clear that it doesn’t want to remain a South India-centric lender. The management has publicly shared ambitions to open 40-50 new branches by March 2027 and extend operations to Madhya Pradesh, Maharashtra, and Uttar Pradesh. Such a move would allow the company to move from being a strong regional player to a more pan-India focused lender.
Why this matters to the lending ecosystem
As an individual who actively observes the startup and financial ecosystem of India, I am particularly interested in this news as it relates to micro, small, and medium enterprises (MSMEs), which are a meaningful contributor to India’s economy, but consistently struggle to access formal credit. More defines, larger banks, especially in smaller towns, would not focus on MSMEs and therefore a competitive edge to agile lenders, such as GrowXCD. What sets them apart is their branch-first model combined with tech-driven underwriting, which makes it easier to serve customers who don’t always fit the traditional credit mold.
The most recent funding indicates that investors believe in this approach, but raises questions about execution. Going into new geographies presents different risks, and scaling up is to be seen, as loan quality will also be in question. Still, with an earnings release showing 99%+ collection efficiency in its official filings and strong capital bases, GrowXCD can likely withstand the leap.
Shaping India’s Credit Ecosystem
This is more than just another headline about funding for me. This signifies that India’s credit ecosystem can change slowly. As founders such as Arjun Muralidharan focus on underserved borrowers and investors such as Blue Earth and Prosus back them, the momentum for inclusive finance is finally happening. If GrowXCD executes its plans well, it could become a name to watch in India’s fast-growing MSME lending sector.
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