Optimo Capital Secures $17.5M for Digital LAP Expansion

Optimo Capital has secured $17,500,000 in its latest funding round, positioning the company to accelerate its efforts in digitizing the Loan Against Property (LAP) market across India. This capital infusion will support the company's growth initiatives aimed at improving access to vital business financing for MSMEs nationwide. The company addresses a significant market gap within India’s financial landscape. While MSMEs are pivotal to the nation's economic growth, contributing 30% to GDP, many face hurdles in accessing timely capital. A substantial portion of India's wealth is held in land and property, yet traditional LAP processes are slow, often taking 18 days for disbursement. This inefficiency has limited the small-ticket LAP market to approximately $22 billion, despite an estimated potential of $270 billion. Optimo Capital is developing India's first Digital LAP product, designed to streamline the process by enabling business owners to digitally share details and documents. By leveraging technology to analyze vast datasets of property records, Optimo aims to issue in-principle sanction letters within two hours and disburse loans within 48 hours. This funding round is critical for Optimo Capital as it seeks to scale its innovative approach and unlock the substantial potential of the LAP market. The capital will be deployed to further invest in technology development, enhance its digital platform, and expand its operational reach. Beyond its digital sourcing capabilities, Optimo maintains an omni-channel strategy, establishing physical branches in rural India for both sourcing and collections. This dual approach aims to ensure broad accessibility and efficient service delivery. Currently operating 17 branches across Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana, Optimo Capital plans to significantly expand its physical presence. The company intends to increase its branch network to 50 locations by March 2025, underscoring its commitment to serving a wider base of Indian MSMEs and facilitating their growth through quicker access to asset-backed financing.