Investors commit up to Rs.1,000 crore to Vegafin, which takes control of Bizloan
Premji Invest, Norwest and Lok Capital plan up to Rs.1,000 crore for Vegafin, an AI lender for MSMEs, and part of it has already bought control of Bizloan.
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what happened
Premji Invest, Norwest and Lok Capital plan to put up to Rs.1,000 crore into Vegafin, an AI-powered lender focused on micro, small and medium enterprises (MSMEs), according to a joint statement reported by Moody's. The company was set up by Bijith Bhaskar, a former ICICI Bank executive who spent more than two decades at the bank.
Part of that capital has already gone toward buying a controlling stake in Bizloan, a Gurugram-based non-bank lender that focuses on secured MSME loans. The rest will fund technology development and growth. EY Investment Banking served as the exclusive financial adviser on the transaction.
Bizloan operates in five states with over 35 branches and manages roughly Rs.235 crore in assets. It was founded in 2018. BLinC Invest will remain a shareholder, while Mohan Enterprises and the Michael & Susan Dell Foundation are exiting.
why it matters
The deal is modest in size and confined to India's non-bank lending niche, so its direct effect on broader markets is limited. It does signal investor appetite for tech-driven credit to small businesses, a segment the parties say remains heavily underserved by formal lenders.
tags
sources
- Premji Invest, Norwest and Lok Capital back Vegafin's majority stake in Bizloan with up to Rs.1,000 crore in commitment — Moody's, 21 October 2026 at 15:25 UTC
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