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EaseMyTrip Co-founder Prashant Pitti’s MSME lending startup Optimo Loan raises $10M from Blume, Omnivore

The funding will be used to expand Optimo’s operations, enhance its technology, recruit new talent, and broaden its presence to twenty locations in rural India by the end of this year, the company said.

Rural MSME lender Optimo Loan has raised $10 million in seed funding led by Blume and Omnivore, with additional contribution from Optimo’s Founder, Prashant Pitti. Pitti, also the co-founder of travel company EaseMyTrip, had announced the lending platform in a post on X in July last year. The lending operations began in November last year. 

“We are scaling swiftly yet prudently. Our top management team comprises individuals with extensive experience of 10-15 years in MSME lending. We aim to establish an asset-light company by primarily leveraging co-lending agreements with banks and larger NBFCs,” said Pitti. 

Optimo aims to bridge the $530 billion credit gap in MSME lending, by facilitating credit access for MSMEs in India’s rural areas through a co-lending model.

The funding will be used to expand Optimo’s operations, enhance its technology, recruit new talent, and broaden its presence to twenty locations in rural India by the end of this year, the company said in a statement. 

Ashish Fafadia, Partner at Blume Ventures, said, “We believe in Optimo’s mission to democratize access to finance for MSMEs in rural India, especially considering their significant contribution of 29% to GDP. To achieve the ambitious goal of elevating this contribution from 4 to 15 trillion over the next 15-20 years, it’s imperative to explore more effective collaboration avenues.”

Optimo offers working capital, equipment financing, merchant cash advances, expansion loans, and invoice financing solutions with a repayment period of 12 to 24 months. 

Importantly, loans given by non-banking financial companies (NBFCs) to the MSME sector have been more than three times that of banks, indicating a growing preference for NBFCs among small businesses to raise credit.