Premji Invest, Norwest And Lok Capital To Invest Rs 1,000 Crore In Vegafin, AI-Powered MSME Lending Platform To Acquire Bizloan

Mumbai: Premji Invest, Norwest and Lok Capital have announced plans to collectively invest up to Rs 1,000 crore in Vegafin, a lending startup focused on micro, small and medium enterprises (MSMEs). The investment aims to develop an artificial intelligence-powered lending platform serving underserved small businesses across India.

Vegafin To Acquire Majority Stake In Bizloan

As part of its expansion strategy, Vegafin will acquire a majority stake in Bizloan, an MSME-focused lender with assets under management exceeding Rs 235 crore. The company has signed definitive agreements for the acquisition, although the transaction value remains undisclosed.

Bizloan's existing investors include the Michael & Susan Dell Foundation, Mohan Enterprises and BLinC Invest. Following the transaction, the first two investors will exit, while BLinC Invest will retain its investment.

AI-Powered Lending Platform For MSMEs

Vegafin plans to build an AI-first lending platform designed to improve loan processing, credit risk assessment and operational efficiency. The technology-driven approach aims to reduce lending costs, accelerate loan approvals and expand financing access for underserved MSMEs. The company intends to establish a nationwide presence in India's growing small-business lending market.

Who Is Vegafin Founder Bijith Bhaskar?

Vegafin was founded by Bijith Bhaskar, who previously held senior positions at ICICI Bank and Premji Invest. Bhaskar, the company's Managing Director and CEO, highlighted the need for a pan-India MSME lender capable of managing costs efficiently and assessing credit risks accurately.

Investors See Growth Opportunities

Saravanan Nattanmai, Partner for Financial Services at Premji Invest, said supporting such platforms could strengthen small businesses that contribute significantly to India's economy. Premji Invest Vice President Kaustubh Jhaveri highlighted Vegafin's access to capital, experienced leadership and distribution capabilities. He said its AI-first operating model could help improve business efficiency.

The proposed investment and Bizloan acquisition mark Vegafin's initial steps towards building a technology-led MSME financing business.