Prayaan Capital Raises ₹110 Crore Series A Led by Peak XV

Chennai-based Prayaan Capital on February 26, 2026, announced it has raised ₹110 crore in a Series A funding round led by Peak XV Partners, as it looks to build a technology-driven MSME lending platform

focused on underserved small businesses across India.

The company is led by Rangarajan Krishnan, former JMD and CEO of Five-Star Business Finance, who recently acquired a controlling stake in Prayaan Capital. He aims to transform the firm into a new-age MSME lender combining on-ground underwriting expertise with a technology-first approach across sourcing, underwriting and collections.

India’s nearly 70 million MSMEs employ about 300 million people but continue to face an estimated $300 billion credit gap, presenting a significant opportunity for new lending platforms. Prayaan Capital plans to blend branch-led distribution with digital tools to improve credit access and operational efficiency.

Rangarajan Krishnan, Promoter, Prayaan Capital, said: "Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit. Prayaan Capital is built on the belief that combining deep customer understanding with technology can meaningfully expand access. I am grateful to partner with Peak XV, who have been long-term believers in this segment and have supported me through multiple chapters of my journey."

GV Ravishankar, Managing Director, Peak XV, said: "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 and his team bring deep experience and a genuine obsession with serving this segment well. Having seen firsthand the impact they created at Five-Star, we are excited to partner with them from day one as they build Prayaan Capital."

The company said the funds will be deployed to strengthen its lending platform, expand its team and scale operations across key MSME markets nationwide.