Namdev Finvest Lands $38M for Green and Rural Development

In a significant development for India’s rural financing sector, Jaipur-based non-banking financial company (NBFC) Namdev Finvest has successfully raised $38 million in debt funding from a consortium of international investors. The funding round, led by impact investor BlueOrchard with $13 million, includes contributions from US-based Developing World Markets (DWM) at $8.25 million and French asset management firm Mirova at $10 million, marking the latter’s inaugural investment in India.
The fresh capital injection comes at a crucial time as Namdev Finvest seeks to expand its footprint beyond traditional lending models and strengthen its presence in underserved rural markets. This funding round represents a strategic shift towards sustainable finance, particularly in clean mobility and renewable energy projects, potentially creating a ripple effect across Tamil Nadu’s growing green finance ecosystem.
“We deeply value the commitment from Mirova Investments to provide dedicated resources for climate-efficient financing,” stated Jitendra Tanwar, Managing Director and CEO of Namdev Finvest. “This comes at the right time, as we at Namdev Finvest are increasing our participation in climate-focused products, which will significantly impact rural communities across India, including Tamil Nadu.”
Since its inception in 2014, Namdev Finvest has established itself as a prominent player in rural financial inclusion, building an impressive network of 112 branches across nine Indian states. The company’s loan portfolio has reached approximately INR 1,370 crore, serving over 50,000 active customers, primarily focusing on MSMEs and green finance initiatives.
The funding announcement gains particular significance for Tamil Nadu’s startup ecosystem, as the state has been actively promoting sustainable finance and clean energy initiatives. Namdev Finvest’s expansion into the region could potentially bridge the significant funding gap faced by rural entrepreneurs and clean technology ventures in Tamil Nadu’s tier-2 and tier-3 cities.
The NBFC’s strategic focus on diversifying beyond traditional lending models aligns well with Tamil Nadu’s push towards sustainable development. The state’s robust MSME sector, coupled with its growing emphasis on clean energy projects, presents a substantial opportunity for Namdev Finvest to deploy its fresh capital effectively.
The company’s growth trajectory has been remarkable, with this debt funding following two significant equity rounds in the past year. In January 2024, Namdev raised $15 million in its Series B round, followed by a $19 million pre-Series C round led by Danish asset management company Maj Invest in April 2024. The company has built strong relationships with over 40 lenders, including public and private banks, small finance banks, and various financial institutions.
This latest funding round reflects the growing investor confidence in India’s NBFC sector, particularly in companies focusing on sustainable finance and rural development. The involvement of international investors like Mirova, making their first Indian investment through Namdev, signals strong global interest in India’s rural financing landscape.
For Tamil Nadu’s entrepreneurial ecosystem, Namdev Finvest’s expansion could catalyze greater financial inclusion and support for green initiatives. The company’s focus on clean mobility and renewable energy projects aligns perfectly with the state’s vision for sustainable development and could potentially create new opportunities for local entrepreneurs in the clean technology sector.