In a significant move for India’s B2B fintech landscape, Mumbai-based Knight Fintech has raised $23.6 million (approx. ₹196 crore) in a Series A funding round led by Accel. The capital infusion marks a pivotal moment for the startup as it looks to solidify its position as a “soonicorn” and revolutionize the infrastructure powering banks and non-banking financial companies (NBFCs).

The funding round also saw participation from prominent investors, including IIFL and Rocket Capital, alongside existing backers such as Prime Venture Partners, 3one4 Capital, Commerce VC, and Trifecta Capital. This latest round brings Knight Fintech’s total funding to over $30 million.

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Founded in 2019 by Kushal Rastogi and Parthesh Shah, Knight Fintech operates as a critical technology bridge in the financial ecosystem. Unlike consumer-facing fintechs, Knight Fintech provides the “plumbing” or backend infrastructure that allows traditional banks to collaborate with agile lenders.

The company’s “multi-engine” platform supports four core pillars:

1. Co-lending: Enabling banks and NBFCs to partner on loan originations.
2. Digital Lending: Streamlining end-to-end credit journeys.
3. Embedded Finance: Integrating financial services into non-financial platforms.
4. Treasury Management: Managing liquidity, market risk, and investments.

According to CEO Kushal Rastogi, the co-lending and treasury segments are already operating at a meaningful scale, while the company is seeing rapid acceleration in its embedded finance and digital lending arms.

The fresh capital is earmarked for two primary objectives: technological innovation and geographic growth.

Knight Fintech plans to double down on its AI-first product roadmap. This includes enhancing its suite of tools for automated credit underwriting, risk intelligence, fraud detection, and portfolio monitoring. By leveraging advanced data analytics, the platform aims to reduce operational friction and improve the accuracy of debt recovery and early warning systems for lenders.

Beyond technology, the startup is eyeing the global stage. Knight Fintech intends to expand its footprint into the Middle East (GCC) and the Asia-Pacific (APAC) regions. To steer this international push, the company has brought on Sanat Rao, the former Global CEO of Infosys Finacle, as an investor and board advisor. Rao’s deep expertise in global banking software is expected to be a major catalyst for the firm’s cross-border ambitions.

The investment comes on the back of stellar operational performance. Knight Fintech currently partners with over 150 organizations across 85 lenders, including major names like Bank of Baroda, ICICI Securities, IIFL Finance, and NABARD.

Key performance indicators (KPIs) highlight the company’s scale:

• $7 Billion+ in cumulative loan disbursements facilitated.

• $5 Billion+ in active Assets Under Management (AUM).

• $125 Billion+ managed via its treasury platform.

Despite the “funding winter” that slowed capital flow in previous years, Knight Fintech’s ability to secure a large Series A underscores the high investor conviction in B2B SaaS and fintech infrastructure. For FY24, the company reported a revenue of INR 30.1 crore, and it aims to scale this to $85–100 million annually over the next four years.

As India’s fintech sector moves toward a projected $250 billion revenue opportunity by 2030, Knight Fintech is well-positioned to remain at the heart of this transformation, turning traditional banking into a high-speed, AI-driven digital powerhouse.