Bengaluru-based MSME lender Optimo Capital has raised ₹1 billion in debt from Punjab National Bank, following ₹1.50 billion in equity funding six months ago. The NBFC also entered a co-lending partnership with Godrej Finance to disburse ₹2 billion over the next year, targeting India's small-business credit gap.
Optimo Capital, a non-banking financial company focused on secured MSME lending, has secured ₹1 billion in debt financing from Punjab National Bank. The latest fundraising comes approximately six months after the Bengaluru-based startup raised ₹1.5 billion in equity from Blume Ventures, Omnivore and its founder Prashant Pitti. Concurrently, the company has entered into a co-lending agreement with Godrej Finance to disburse ₹2 billion over the next 12 months.
The company specialises in digital loan-against-property (LAP) products, allowing business owners to upload documents and access credit through a technology-driven underwriting platform. According to the firm, it has built an assets under management (AUM) of approximately ₹4.3 billion while maintaining gross non-performing assets below 0.7%. Optimo reports profitability since its inception 22 months ago, with monthly profits between ₹20 to 30 million.
This development matters as it addresses the estimated US$240 billion credit gap in India's MSME sector, which employs millions but faces persistent funding challenges. The dual infusion of debt capital and co-lending capacity strengthens Optimo's ability to scale in semi-urban and rural markets where traditional bank lending remains constrained. The company currently operates 51 branches across five southern and central Indian states with over 500 employees.
For the broader NBFC sector, the transaction signals continued institutional appetite for well-underwritten MSME lending platforms with strong asset quality metrics. The co-lending model with Godrej Finance also reflects growing collaboration between traditional financiers and agile digital lenders. Optimo competes with larger NBFCs including Bajaj Finserv, PNB Housing Finance, Tata Capital and Muthoot Finance in the secured MSME lending space.
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