Optimo Loan Secures $10 Million in Funding for MSME Credit Solutions

Optimo Loan, a small business-focused lending startup, has raised $10 million in its first equity fundraise. The funding round was led by Blume Ventures and Omnivore, with founder Prashant Pitti also contributing. The startup aims to bridge the $530 billion credit gap in MSME lending in India by leveraging technology and a phygital distribution model. Optimo will focus on building a co-lending platform for MSMEs with a unique underwriting method to gain deep insights into the financial health of its customers. With only 25% of MSMEs having access to formal credit, the opportunity in the sector is massive. Pitti plans to run Optimo Loan parallel to his existing venture, Easemytrip, and aims to establish an asset-light company by primarily leveraging co-lending agreements with banks and larger NBFCs. The startup has already commenced lending operations in November 2023 and is scaling swiftly yet prudently. The raised funds will be used for expanding operations, improving technology, recruiting new talent, and broadening presence to twenty locations in rural India by the end of the year.