Hiranandani Financial Secures ₹800 Crore Investment From Vitruvian Partners

Hiranandani Financial Services (HFS), a non-banking financial company (NBFC) specialising in small business lending, announced on Tuesday that it has raised ₹800 crore from global investment firm Vitruvian Partners. The infusion, channelled through Vitruvian's Singapore platform, will grant the investor a minority stake in HFS, bolstering its growth amid India's burgeoning MSME credit landscape. Founded by Harsh Hiranandani—son of real estate magnate Surendra Hiranandani, whose group develops premium residential and commercial projects—the Mumbai-based firm has emerged as a key player in underserved markets since its inception in 2020. This funding round underscores investor confidence in fintech-driven NBFCs as they navigate regulatory tightening and economic recovery post-pandemic.

The capital will primarily fuel HFS's expansion into Tier-2 and Tier-3 cities, where access to formal credit remains limited for micro, small, and medium enterprises (MSMEs). These businesses, contributing over 30% to India's GDP and employing millions, often face high rejection rates from traditional banks due to informal documentation. HFS plans to enhance its portfolio of secured lending products, such as equipment and working capital loans, while ramping up investments in technology infrastructure and talent acquisition. The company's direct-to-consumer model leverages alternative data sources—including utility payments, GST filings, and digital footprints—coupled with automated credit engines, mobile onboarding, and real-time KYC verification, to approve loans swiftly and minimise defaults. As of mid-2025, HFS's assets under management exceed ₹2,500 crore, with a focus on low-risk, collateral-backed disbursals yielding stable returns.

Kartikeya Kaji, who heads Vitruvian Partners' India investments, praised HFS's hybrid approach as a model of scalability and resilience. "The company's blend of on-the-ground outreach with a robust digital stack has enabled it to thrive in volatile conditions, delivering consistent growth and low delinquency rates," Kaji stated. Vitruvian, known for backing high-growth firms like Pine Labs and Lenskart, enters the fray as foreign institutional investors increasingly eye India's $500 billion MSME credit gap. The partnership aligns with Vitruvian's strategy of supporting sector-agnostic ventures in emerging markets, having deployed over $10 billion globally since 2006.

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Harsh Hiranandani, HFS's founder and managing director, described the funding as a pivotal step toward establishing the firm as India's premier trusted platform for MSME financing. "This investment empowers us to scale responsibly, reaching more entrepreneurs who drive the nation's economic engine," he said. With RBI's recent push for digital lending norms and MSME-friendly policies, HFS is well-positioned to capture market share. Analysts anticipate the funds will accelerate loan book growth to ₹5,000 crore by 2027, fostering job creation and regional development in a sector vital to achieving India's $5 trillion economy goal.

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