Metafin has raised $10 million in a Series A funding round led by Vertex Ventures Southeast Asia and India.
The round, a mix of equity and debt, also saw participation from existing investors Prime Venture Partners and Varanium Capital, as well as financial institutions, including Northern Arc and AU Small Finance Bank.
In a media briefing, Aditya Shah, Co-founder, Metafin mentioned that the bulk of the funding raised was equity with a smaller debt component. The startup will use a major portion of the newly raised funds as growth capital to grow its book from about 3,500 installations to about 10,000 projects in the next 12 to 18 months. It will also divert a smaller portion of the fund to bolster its senior management team, and the remaining portion to grow the company’s tech stack.
Metafin’s proprietary IoT tech stack can monitor 1,100 of its plants every two seconds, churning out data regarding how much energy is consumed, what is working, and what is not working. Metafin also has the ability to switch off these plants remotely if people default on payments.
The new fundraise will help the company put in place a better data mining system that can help it curate better risk management tools, without relying on physical visits and other conventional methods alone. Metafin primarily services the micro, small, and medium enterprises (MSMEs) and rural households in India. It has provided financing for solar projects across 2,500 villages in Uttar Pradesh and Bihar.
According to Sandeep Chopra, Co-founder, Metafin, the firm will expand its presence in five more states by the end of this year. The company is evaluating opportunities in states where there is scope for solar energy and is relatively unpenetrated, such as Chhattisgarh, Jharkhand, Odisha, and Madhya Pradesh.
The startup is looking to triple its revenue over the next year with a goal to break even and remain profitable.
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