Prayaan Capital raises ₹ 110 crore in Series A round led by Peak XV Partners

thehindubusinessline.com · Feb 27, 2026 · Collected from GDELT

Full Article

Chennai-based MSME lending platform Prayaan Capital has raised ₹ 110 crore in a Series A round led by Peak XV Partners, the company said on Thursday.The company said it will use the funds to build its lending platform, expand its team and grow its presence in MSME markets across India.Rangarajan Krishnan, recently acquired a controlling stake in the company. He earlier served as JMD and CEO of Five-Star Business Finance.Prayaan Capital plans to focus on MSMEs across India. The company said the segment faces an estimated $300 billion credit gap. India has about 70 million MSMEs. The company employs nearly 300 million people, it said.Rangarajan Krishnan said, “Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit”.He added that Prayaan Capital is founded on the view that combining customer understanding with technology can expand access to credit.He further said that he was grateful to partner with Peak XV Partners, which has backed the segment over the long term.GV Ravishankar, Managing Director at Peak XV Partners, said the firm has known Krishnan for over 15 years.“We have known Ranga for over 15 years and our partnership has been shaped by a shared commitment to expanding access to credit for small businesses,” he said.He added that after witnessing the impact they made at Five-Star, the team is pleased to back them from the outset as they establish Prayaan Capital.Peak XV Partners, formerly Sequoia Capital India & SEA, manages over $10 billion across 16 funds and has invested in more than 450 companies.(With inputs from bl intern Tejaswini S)Published on February 27, 2026