Optimo Capital Secures $17.5 Million Series A Funding to Transform India’s LAP Market

Indian fintech Optimo Capital has raised ₹150 crore in a Series A funding round. The investment was led by founder Prashant Pitti and supported by existing investors Blume Ventures and Omnivore. This major funding injection occurred in late October 2025.The capital will fuel the company’s mission to bridge a massive credit gap for small businesses. Optimo specializes in providing digital Loan Against Property (LAP) solutions.

Unlocking Billions in Stalled Assets for MSMEs

Optimo targets a vast, underserved market of small business owners. According to industry reports, an estimated 48 million entrepreneurs lack a formal credit history. This makes securing large loans from traditional banks nearly impossible.Many of these business owners, however, own property. Their homes or shops represent their most valuable but underutilized asset. Optimo’s platform allows them to use this property as collateral for substantial loans.The process offers significant advantages over unsecured loans. Borrowers can access higher amounts at lower interest rates. This provides a more affordable path to business growth capital.

AI-Powered Speed in a Traditionally Slow Industry

Optimo’s key innovation lies in its use of technology. The company leverages artificial intelligence and analyzes millions of digital land records. This allows for rapid property valuation and title verification.This tech-driven approach drastically cuts down processing times. Customers can receive an in-principle approval within hours. Full loan disbursement happens in under a week.This is a stark contrast to the traditional LAP process. Conventional banks and NBFCs often take four to six weeks to disburse such loans. The speed is a major competitive edge for the fintech.

Profitable Growth and Nationwide Expansion

In just 18 months of operation, Optimo has demonstrated remarkable growth. The company has built a loan book of ₹350 crore. It has also expanded its physical presence to 56 cities across five states.Its team has grown to 480 employees to support this expansion. Perhaps most impressively, the company achieved profitability within three months of starting. It has remained profitable for over 15 consecutive months.This financial discipline is rare in the venture-backed fintech space. It signals a sustainable and scalable business model. The new funding will accelerate its reach into tier-3 cities across India.

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Optimo Capital’s latest funding round solidifies its position as a key player in solving India’s vast credit gap. Its unique approach to the Loan Against Property market is poised for significant expansion, unlocking billions in dormant assets for the nation’s small business engine.

Dropping this nugget your way

What is a Loan Against Property (LAP)?

A Loan Against Property is a secured loan where a borrower uses their residential or commercial property as collateral. This allows individuals or business owners to access large amounts of capital. The interest rates are typically lower than those for unsecured loans.

How is Optimo Capital different from a bank?

Optimo uses a fully digital, AI-driven process to evaluate loans quickly. It focuses on serving small business owners who may not have a formal credit history. This results in approval and disbursement times that are significantly faster than traditional banks.

What is the size of the LAP market in India?

The mid-ticket LAP market in India is estimated to be a ₹22 lakh crore opportunity. Reports from firms like Omnivore indicate that only about 28% of this demand is currently being met. This leaves a massive gap for companies like Optimo to fill.

Where does Optimo Capital currently operate?

Optimo has established branches in 56 cities across several states. Its operational footprint includes Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Madhya Pradesh. The company plans to use the new funds to expand further into tier-3 cities.

Why is this funding round significant?

The ₹150 crore Series A round is a substantial investment for a fintech NBFC. It validates Optimo’s unique business model and rapid growth. The funding will directly support technological advancement and geographical expansion.