SarvaGram

SarvaGram is a rural-focused fintech platform delivering tailored credit and financial services to India’s vast and underserved rural households.. The company operates at the intersection of technology and grassroots distribution, leveraging a “high-tech, high-touch” model to serve over 100,000 clients across five states through 150 branches and a network of 630+ SarvaMitra franchises. SarvaGram’s core business lines include a comprehensive suite of loans (business, farm, personal, home, and gold), insurance, and productivity tools such as farm mechanization services.

Core Products and Services

• Business Loans (35% of AUM): Working capital and expansion loans for micro and small enterprises in rural areas.

• Farm Loans (35% of AUM): Credit for crop cultivation, dairy, and allied agricultural activities, often secured by property or hypothecation.

• Personal Loans (25% of AUM): Flexible loans for personal consumption, education, or medical emergencies.

• Home Loans (4% of AUM): Affordable housing finance for rural families.

• Gold Loans (1% of AUM): Short-term loans secured by gold jewelry.

• Insurance Products: Health and personal accident insurance, delivered through the SarvaMitra network.

• Farm Mechanization Services: Access to equipment like cultivators and harvesters, enhancing rural productivity.

Business Model & Revenue Streams

• Interest Income on Loans: SarvaGram’s primary revenue stream is the interest earned from its diverse loan portfolio, which includes business, farm, personal, home, and gold loans.

• Processing Fees: The company charges processing fees on loan disbursements, adding a secondary but meaningful revenue layer to its lending operations.

• Insurance and Productivity Services: Additional revenue is generated through cross-selling insurance products (such as health and accident coverage) and offering farm mechanization services to rural households.

• Customer Segmentation: SarvaGram operates a B2C model, directly serving rural households and micro-entrepreneurs via its branch and SarvaMitra franchise network, with no revenue dependence on any single client.

• Revenue Growth: The company reported a 2.3x year-on-year increase in operating revenue to ₹170 crore ($20.4 million) in FY24, driven by loan book expansion and increased cross-selling of ancillary services.

Top Clients & Partnerships

• Lending Partners: Collaborations with IDFC First Bank, AU Small Finance Bank, Oxyzo, Ambit Finvest, Alteria Capital, Vivitri, Western Capital, and Northern Arc enable co-lending and risk-sharing models, expanding credit access for rural clients.

• Distribution Network: The SarvaMitra franchise model underpins last-mile delivery, with over 630 franchisees operating across 38,000+ villages.

• Equity Investors: Peak XV Partners, Elevar Equity, Elevation Capital, Temasek, and TVS Capital are key institutional backers, bringing both capital and strategic guidance.

• Technology and Insurance Partners: SarvaGram partners with technology providers and insurers to deliver bundled products and streamline operations.

Future Outlook & Strategic Priorities

• Product Expansion: Rolling out new credit products, insurance offerings, and farm productivity solutions tailored to evolving rural needs.

• Geographic Scale-Up: Increasing penetration in existing states and expanding into new regions, with a focus on underbanked villages and small towns.

• Digital Transformation: Continued investment in proprietary data analytics and underwriting algorithms to enhance risk management and operational efficiency.

• Network Growth: Scaling the SarvaMitra franchise model and retail outlet footprint to drive customer acquisition and engagement.