Premji Invest, Norwest, and Lok Capital have announced a collective commitment of up to ₹10 billion (approximately US$106 million) to Vegafin, a newly formed micro, small, and medium enterprise lending platform led by Bijith Bhaskar. Bhaskar is a former ICICI Bank executive and previously held a senior role at Premji Invest. Vegafin will use a significant portion of the capital to acquire a majority stake in Bizloan, a Gurugram-based non-banking financial company specializing in secured MSME loans.
Investor Backing and Deal Structure
Premji Invest, Norwest, and Lok Capital will collectively invest up to ₹10 billion in Vegafin through a combination of equity and acquisition financing. The vehicle, Vegafin, has signed definitive agreements to acquire majority control of Bizloan for an undisclosed sum, adding an existing non-banking financial company franchise with over ₹2.35 billion in assets under management. Under the arrangement, existing investors Michael & Susan Dell Foundation and Mohan Enterprises will exit, while BLinC Invest will continue to hold its stake.
AI-Driven Lending Platform
Vegafin will build an AI-first lending platform designed specifically for micro, small, and medium enterprises, with a focus on faster turnaround times, sharper risk selection, and lower operating costs. The company plans to use technology and artificial intelligence to assess loan applications, speed up lending decisions, and support an on-ground network for borrower outreach across multiple states. This model is intended to widen access to affordable secured credit across the MSME lifecycle, from working capital to expansion finance.
Founder and Leadership Experience
Vegafin is led by Bijith Bhaskar, who serves as founder, chief executive officer, and managing director. His experience at ICICI Bank and his senior role at Premji Invest give him a combination of banking operations, credit underwriting, and investment expertise. That background is expected to support regulatory execution, product design, partnerships, and disciplined capital deployment for the new platform.
Market Need and Strategic Vision
India's MSME sector continues to face a significant credit gap, which is estimated at more than ₹30 trillion. Bhaskar said there is a clear need for a pan-India player with strong MSME focus, efficient cost of service, and the ability to price risk accurately. Premji Invest partner for financial services Saravanan Nattanmai added that empowering platforms such as Vegafin can drive real business growth for the small businesses that underpin the economy.
Bizloan Integration and Expansion
Bizloan operates across five states with more than 35 branches and about ₹2.35 billion in assets under management, providing secured loans to MSME borrowers. The acquisition is expected to help Vegafin process loans faster, improve borrower selection, and reduce operating costs as it expands into underserved markets. Premji Invest vice president Kaustubh Jhaveri noted that most lending platforms spend years assembling capital, talent, and distribution, while Vegafin starts with all three.
By combining experienced leadership, institutional capital, and an existing lending franchise, Vegafin aims to build a pan-India MSME lending platform. The deal underscores growing investor interest in technology-led credit solutions for underserved small businesses, a segment that remains central to India's economic growth. Vegafin's AI-first approach and Bizloan's distribution network position the company to address a substantial and persistent financing gap in the sector.