Peak XV Partners helps lending company Prayaan Capital fund Rs 110 crore

Prayaan Capital Raises ₹110 Crore Led by Peak XV Partners to Expand MSME Lending

Non-banking financial company (NBFC) Prayaan Capital has raised ₹110 crore in funding, led by Peak XV Partners, the company said in a statement.

The capital infusion follows Rangarajan Krishnan, former CEO of Five Star Business Finance, acquiring a controlling stake in Prayaan Capital. Krishnan stepped down from his role at Five Star Business Finance in August last year.

Founded in 2018, Prayaan Capital plans to use the fresh funds to strengthen its lending platform, expand its team, and increase its presence across key MSME markets in India.

The company will focus primarily on lending to micro, small and medium enterprises (MSMEs)—a segment that continues to face significant challenges in accessing formal credit. According to the company, the credit gap for India’s MSME sector is estimated at around $300 billion.

“Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit,” Krishnan said. “Prayaan Capital is built on the belief that combining deep customer understanding with technology can meaningfully expand access.”

With the new funding, the company aims to accelerate its efforts to provide accessible financing solutions to underserved small businesses across the country.