In the heart of India’s small towns – with population size of three lakh – where kirana stores, tailoring shops, and roadside eateries form the backbone of local economies, Purple Finance is expanding its business by providing secured loan against property (LAP), with ticket sizes averaging Rs 7 lakh.
The loan size is 40%, or even 100% lower than listed housing finance companies whose average ticket size hover between Rs 10-15 lakh in the affordable housing segment.
Founded in 2021 by four entrepreneurs, the non-banking finance company (NBFC) has rapidly scaled its presence across seven states, including Maharashtra, Madhya Pradesh, and Uttar Pradesh, with 44 branches and a clear ambition to become a Small Finance Bank (SFB) by 2028.
Currently at a loan book Rs 170 crore, Purple’s net worth exceeds Rs 100 crore, bolstered by equity from marquee investors like Madhu Kela, via Founders Collective Fund, Abhinandan Lodha via Tomorrow Capital, Debasish Mishra of Deloitte and venture capital fund Core91. All these investors came in two years back during the first round of funding when Purple Finance raised Rs 10 crore. As of September 2025, these investors hold anywhere between 1.5-2% stake in the NBFC.
“Our vision is to be the banker to the family,” says Amitabh Chaturvedi, Founder & Executive Chairman, Purple Finance. His strategy is rooted in deep regional understanding and financial inclusion. “We lend to the smallest businesses in towns with populations under 300,000. These are entrepreneurs who have never had access to formal credit, yet they’re incredibly disciplined. They know their CIBIL scores better than most urban borrowers.”
The company’s assessed income model based on video-recorded interviews and property valuation helps navigate the cash-based nature of its clientele. “We don’t just lend, we understand their business, their aspirations,” Chaturvedi emphasises. “That’s why our NPAs are under 1%.” This has seen the NBFC’s loan tenure stretching up to 10 years putting less pressure on the borrower.
Despite a Rs 1.6 crore loss in Q2, Chaturvedi is optimistic, “We will break even in Q3. Once our loan book hits Rs 200 crore, profitability will follow.”