Premji Invest, Norwest, Lok Capital invest Rs 1,000 crore in Vegafin, to acquire majority stake in Bizloan

Premji Invest, Norwest and Lok Capital on October 21 announced an investment of Rs 1,000 crore in Vegafin, an MSME-lending platform founded and promoted by ICICI Bank veteran Bijith Bhaskar. The investors aim to build an AI-first lending platform for micro, small and medium enterprises (MSMEs), starting with the acquisition of a majority stake in Bizloan, a Gurugram-based non-banking financial company (NBFC) focused on secured MSME lending. Vegafin plans to build a technology-led MSME lending platform differentiated by AI-driven underwriting, digital workflows and data-led credit decisions, complemented by a strong on-ground distribution network. The platform aims to enable faster turnaround times, sharper risk selection and lower operating costs while expanding access to credit for underserved MSMEs. As the first step in building the platform, Vegafin, led by Bhaskar and the financial investors, has entered into definitive agreements to acquire a majority stake in Bizloan. Bizloan operates across five states through more than 35 branches and manages assets under management (AUM) of over Rs 235 crore. Founded by veteran bankers Rahul Jain, Abhishek Mishra and Vikram Diwan, the company began operations in 2018. Bizloan is currently backed by the Michael & Susan Dell Foundation, BLinC Invest and Mohan Enterprises. BLinC Invest will remain an investor in the company, while Mohan Enterprises and the Michael & Susan Dell Foundation will exit their investments. Elaborating on the platform strategy, Bhaskar said, "We intend to build a hybrid 'phygital' lending platform to democratise access to MSME credit. Our ambition is to leverage AI and harness data from multiple sources to develop deeper insights into MSME businesses, enabling faster, granular and accurate assessment of credit risk. Over time, we believe this AI- and data-led approach, a handpicked leadership team and a robust capital base will allow us to build a quality lending platform to create meaningful impact in the MSME lending ecosystem." Saravanan Nattanmai, partner, financial services, at Premji Invest, said, "We see a meaningful opportunity to use technology to reduce friction and improve access to credit for MSMEs in India. By co-creating and empowering platforms such as this, we are driving real business growth for the small businesses that underpin the economy." Niren Shah, managing director and head of India, and Nikhil Kookada, principal, at Norwest, said, "We believe the next generation of MSME lenders will be built around technology, AI and data-led underwriting with digitally integrated distribution. Bijith and his team bring a unique combination of large-scale banking, technology and execution experience. Bizloan provides a strong foundation for this journey, and we are delighted to partner with Bijith and the team as they build the platform into a differentiated MSME lender." Rajat Bansal, partner at Lok Capital, said, "India's MSME lending opportunity remains extremely attractive. Small businesses and lower-income households in semi-rural and rural India are still significantly underserved by formal credit. With our investment in Bizloan, we are excited to partner with Bijith and the Vegafin team to build a technology-led financial services platform that innovates for these customers, with a focus on expanding access, understanding risk and building an efficient delivery model." EY Investment Banking acted as the exclusive financial adviser on the transaction. The investment in Bizloan is subject to regulatory approvals and customary closing conditions.