Saarathi Finance Gets A- Rating In First Year Of Operations

Saarathi Finance and Credit Private Limited (SFCPL or Saarathi Finance), a newly licensed non-banking financial company (NBFC) focused on India’s micro, small and medium enterprises (MSMEs), has been assigned an ‘A- (Stable)’ long-term credit rating by ICRA, along with an ‘A2+’ rating for its commercial paper programme. 

Achieving an ‘A-’ rating within the first year of operations in the NBFC sector underscores Saarathi Finance’s strong business model and healthy capitalisation having high-quality investor backing.

Saarathi Finance received an ‘A-’ rating following its first equity funding round of ~₹477 crore in May 2025, backed by notable investors like TVS Capital, Lok Capital, Evolvence Equity Partners and Paragon Partners. Vivek Bansal owns 49%, with institutional investors holding about 35.5%, indicating a strong alignment between management and capital partners.

The rating also recognises the depth and experience of Saarathi’s leadership team, the rapid build-out of its operating infrastructure, and its disciplined risk management and underwriting frameworks. 

Founded in 2024 by banking and financial services veteran Vivek Bansal, Saarathi Finance commenced lending operations in April 2025 with a clear focus on MSMEs in semi-urban and rural India. As of December 31, 2025, the company reported assets under management (AUM) of approximately ₹280 crore, built largely around secured business loans backed by mortgage, with a calibrated approach to unsecured lending over the medium term. The company has established 62 branches across six states — Uttar Pradesh, Rajasthain, Karnataka, Andhra Pradesh, Telangana and Tamil Nadu. 

Commenting on the milestone, Founder and CEO Vivek Bansal said, “Securing an A- rating from ICRA in our very first year is a strong validation of Saarathi Finance’s vision, governance and execution capabilities. It reflects the confidence that lenders, investors and stakeholders have in our strategy to build a high-quality, inclusive MSME lending franchise.”

With strong capital backing, prudent risk management and a clear focus on underserved entrepreneurs, Saarathi Finance is positioned to scale responsibly and play a meaningful role in advancing financial inclusion for Bharat’s small businesses.