Prayaan Capital is building a modern MSME lending platform that blends branch-led distribution with a technology-first approach to sourcing, underwriting, and collections. Recently taken over by Rangarajan Krishnan, former JMD and CEO of Five-Star Business Finance, the company focuses on narrowing India’s estimated $300 billion credit gap for small businesses. Its strategy hinges on combining deep on-ground underwriting expertise with digital tools to deliver faster, more accurate credit decisions. The firm intends to expand its footprint across key MSME markets in India, hiring additional team members and enhancing its technology stack. With fresh capital in hand, Prayaan aims to scale its operations and improve credit access for entrepreneurs traditionally overlooked by formal lenders. No revenue or user metrics were disclosed in the article.

Total raised

$12M

Funding rounds

1

Latest round

Series A

Latest activity

Feb 2026