Optimo Loan, an MSME-focused lending-tech business, has raised $10 million in a seed round led by Blume and Omnivore, with additional contributions from the company’s founder, Prashant Pitti.
According to a news statement, the revenues will be used to grow operations, improve technology, hire new employees, and extend to 20 locations in rural India by the end of the year.
Pitti founded Optimo, which provides MSMEs with speedy and flexible funding solutions. It helps organizations invest in new technologies, increase liquidity, and maintain company continuity. The startup aggressively promotes local job creation, economic growth, and community development.
The business is also developing a co-lending platform for MSMEs using a novel underwriting process. This approach enables Optimo to obtain a deeper understanding of MSMEs’ financial health, allowing for more informed loan decisions and accelerating entrepreneurship and economic growth in rural communities.
Blume Ventures, an early-stage venture fund centered on India, invests in seed and pre-Series A rounds of technology-led enterprises. It is now investing through its Fund IV, a $300 million vehicle backed by large LPs and family offices. Blume now has over $600 million in AUM (Assets Under Management) after Fund IV closed.
The MSME (Micro, Small and Medium Enterprises) sector includes micro, small, and medium firms that provide services or manufacture, process, and preserve items. MSMEs contribute considerably to India’s total GDP, and the government aims to increase this contribution to 50% in the future years. With limited liability, simplified working and focused strategies, the MSMEs have been a strong structure of our industrial landscape.
