Finance & Economy | News & Insights

Rural Fintech major SarvaGram crosses 172 Crore in AUM, records substantial growth in record time

Published: April 27, 2022

Author: DIGITAL MEDIA EXECUTIVE

● SarvaGram crossed the 172 crore mark in AUM since starting its operations in June 2019

● SarvaGram has served over 20,000 households thus far, with projections of catering to 15,00,000 households in the next 5 years
● Expected AUM of 500 cr INR in FY’23, which is projected to go upto 10,000 cr INR in next five years

27 April 2022, Mumbai: Homegrown rural finance and distribution startup SarvaGram announced the crossing of INR 172 Crore mark in AUM, clocking in incredible scale in record time since inception in June 2019. In addition to that, SarvaGram has also registered a significant increase in its annual recurring revenue (ARR), taking the number to over 55 crore INR for FY’22.

The growth was enabled by a number of factors including the implementation of scorecards for improved credit assessment and for automation of the lending and distribution processes. Other factors include the introduction of a state-of-the-art SaaS platform to digitise SarvaGram’s loan collection program. Maintaining the current momentum, the company is projected to acquire an AUM of 500 cr INR in FY ‘23, and reach an AUM of 10,000 cr INR in the next five years while significantly bolstering its customer base to reach 15,00,000 households in the next 5 years.

In its years of operation, SarvaGram has strived to empower rural and semi-urban aspirations across a variety of sectors through its multitude of loan offerings and farm mechanisation facilities. With an expansive network base and a prudent understanding of the need-gaps existing in the target market, SarvaGram leverages data analytics and on-ground knowledge to enable aspirations of its customer segments by providing a plethora of loan options and farm mechanisation services.

Commenting on this milestone, Utpal Isser, Co-founder, MD and CEO, SarvaGram, shared, “We at SarvaGram are committed to empowering rural India’s aspirations through a carefully devised data driven distribution platform. Our continued reliance on a household-centric credit led approach that leverages a high-tech high-touch distribution model has given us an edge in performing in the rural and semi-urban markets. This milestone is a huge testament to and validation for our unique digitisation frameworks customised to the nuances of the customer segment we serve.. From taking a year to reaching our first 1000 customers in 2019 to onboarding 1000+ customers in under one month, this has been an extremely gratifying journey and we are only just scratching the surface of the potential that is waiting to be
unlocked in the Indian rural diaspora.”

SarvaGram bets on the agility, entrepreneurship and appetite for adoption of cutting edge technology that lies untapped in rural India to fuel their aspirations. One such example is Anilbhai Ranchodbhai Patel’s fully automated dairy farm located in petlad village in Gujarat. Anil Bhai’s journey with SarvaGram began with an INR 10.2 Lakhs loan to buy 10 cows & 5 buffaloes. SarvaGram enabled Anil Bhai to adopt the latest dairy technology including milking machine, chilling machine, chaff cutter, automatic water facility and more to enhance productivity and returns. “SarvaGram has enabled the introduction of new tech to our farm, helping reduce the labour and time investment significantly, thus making the business profitable. We are today producing 700 litres of milk per day without half the manual labour”, shared Anil Bhai.

Another example of the resilience, grit and ambitions of rural India comes from Smt. Rekha Panicker from Pimpalgaon, a womanpreneur who chose agility over giving up in the wake of the global pandemic. Rekha’s journey with SarvaGram began in December 2019, with an INR 12 Lakhs loan to buy land and build a house. Come 2020, she had to close the kirana store she ran as her business came from the school the shop was located opposite of which was shut down. In June 2020, SarvaGram extended credit to Rekha to restart her shop and begin a mess business from the store as well as an additional stream of learning. “Not only has SarvaGram been there for me through every financing need but has helped me make the right business decisions as a first time entrepreneur.”, shared Rekha. Headquartered in Mumbai, Maharashtra, SarvaGram currently operates out of 8 hubs, 50 branches across 4 states, and has 220 franchisees across Rajasthan, Karnataka, Maharashtra and Gujarat. SarvaGram plans to enhance their rural network by setting up close to 500 branches in the next few years.

SarvaGram along with its partners is on a journey of creating unique financial and productivity enhancing solutions (loans, risk mitigants and farm mechanisation services) for the emerging middle-classes in rural India. At the core of SarvaGram’s mission is customer centricity and the ethos that the needs of this aspirational, productive segment of the rural economy are specific and necessitate intimate attention and solutions to further propel their growth.