Namdev Finvest bags $37M from FMO, IIX and Franklin Templeton to expand MSME lending

Jaipur-based non-bank lender Namdev Finvest Pvt. Ltd. raised $37 million in fresh debt funding to expand lending to small businesses in India’s rural and semi-urban markets.

The funding was raised through a mix of listed non-convertible debentures and external commercial borrowings from a group that includes Dutch development bank FMO, Impact Investment Exchange (IIX), Franklin Templeton Alternative Investments Fund India and Switzerland-based Symbiotics, the company said on Monday.

“This has been a defining year for Namdev Finvest,” Managing Director and Chief Executive Officer Jitendra Tanwar said in a statement. “The trust placed in us by globally reputed institutions such as FMO, IIX, and Franklin Templeton is a strong endorsement of our governance, operating model, and long-term vision.”

The latest round follows a $38 million debt raise in January 2025 from investors including Developing World Markets, BlueOrchard and Mirova.

Namdev has also attracted equity backing from impact-focused investors such as British International Investment, Incofin and Maj Invest.

Founded in 2013, Namdev Finvest focuses on secured lending to MSMEs as well as financing for two-wheelers, electric rickshaws and rooftop solar installations. The company operates largely in smaller towns and rural districts, where access to formal credit remains limited and borrowers often lack conventional credit histories.

“At FMO, we believe that financial inclusion is a cornerstone for reducing inequalities and driving sustainable economic growth,” Juan Jose Dada Ortiz, director for financial institutions at FMO, said. “Our $20 million investment in Namdev Finvest will enable thousands of micro and small entrepreneurs particularly women-led and rural businesses to access the credit they need to thrive.”

Namdev said the capital would be used to expand its MSME lending franchise across underserved regions, with a focus on women-led enterprises and young entrepreneurs. The company operates through more than 100 branches across nine states, primarily in northern and western India.

As of its latest disclosures, Namdev manages over Rs 1,300 crore ($148 million) in assets, with average loan sizes ranging between Rs 5 lakh and Rs 7 lakh and tenors extending up to a decade. Its borrowers include shopkeepers, small manufacturers, contractors and self-employed workers such as e-rickshaw drivers.

Tanwar, a first-generation entrepreneur, began his career as a tractor salesman before moving into retail lending roles at banks and NBFCs. He acquired Namdev’s NBFC licence in 2013 after mortgaging his house to fund the purchase, at a time when the company had capital of less than Rs 30 lakh.

“We give loans to people who want to start their own business or improve their existing setup, but banks are not able to provide funds to them,” Tanwar has said previously.

The company has also positioned itself around environmental and social lending themes, financing electric rickshaws and rooftop solar projects in select states. IIX said its Women’s Livelihood Bond 7, which participated in the round, is aimed at expanding access to finance for women entrepreneurs.

“Women’s Livelihood Bond™ 7 marks another milestone in scaling gender-lens investing across emerging markets,” Robert Kraybill, managing director and chief investment officer at IIX, said. “WLB7 will empower over 773,000 women and girls while mobilizing capital for enterprises like Namdev Finvest.”

“Namdev has built a scalable, resilient, and secure MSME lending platform with deep reach in underserved regions,” Prashant Bhardwaj, regional head for South Asia at Symbiotics Investments, said. “We see significant potential for the company to emerge as a leading impact-oriented NBFC in India.”