HFS Raises Rs 800 Crore to Support Small Businesses

Hiranandani Financial Services (HFS), a Non?Banking Financial Company (NBFC) focused on helping micro and small businesses, has announced its first external equity fundraise of Rs 800 crore (around $91.5 million).

As part of the deal, funds managed by Vitruvian Partners, a global investment firm that backs fast-growing companies, invested through its Singapore platform and acquired a minority stake in HFS.

The fresh capital will strengthen HFS’s presence in India’s MSME financing sector, expand its reach into underserved Tier III and Tier IV markets, deepen secured lending, and support ongoing investments in technology and talent, the company said.

Backed by House of Hiranandani, HFS plans to use the funds to expand across India’s smaller towns, accelerate loan disbursements, enhance secured lending options, and scale its operations in high-potential MSME clusters.

Harsh Hiranandani, Founder of HFS, said, “This investment is a strong validation of our mission to empower India’s small entrepreneurs with quick, reliable, and tech-driven credit. It helps us build one of India’s most trusted NBFC platforms for MSMEs.”

Uday Suvarna, CEO of HFS, added, “We already have strong support from House of Hiranandani, and now a global firm like Vitruvian Partners is backing us. The credit gap for small businesses is large, and this fundraise will help us reach more entrepreneurs and support their growth.”

HFS uses a direct-to-consumer model and leverages data from multiple sources, automated credit rule engines, mobile-first assisted onboarding, and real-time KYC to approve loans quickly and efficiently.