Optimo Capital

Optimo Capital is a financial services company targeting the significant credit gap for Micro, Small, and Medium Enterprises (MSMEs) in India, a market with an estimated potential of $270 billion. Founded in 2023 by Prashant Pitti, the entrepreneur behind the successful travel platform EaseMyTrip, Optimo Capital aims to modernize the lending process. Pitti, an alumnus of IIT Madras, brings experience from working with financial institutions like HSBC and Capital One in the United States, which informs the company's technology-driven approach.

The company focuses on providing Loans Against Property (LAP), which are secured loans that typically offer lower interest rates compared to unsecured business loans. Optimo is addressing the lengthy disbursement times common in the LAP market, which average 18 days. By leveraging technology to scrape and analyze public data such as land records and property values, the company intends to reduce the in-principle sanction time to just two hours and full disbursement to within 48 hours. This digital-first approach allows business owners to apply online by sharing their details and documents digitally.

Optimo Capital operates on a 'phygital' model, combining digital efficiency with a physical presence. While facilitating online applications, the company is also establishing a network of physical branches, particularly in rural India, for sourcing and collection purposes. As of early 2024, the company had approximately 17 branches across Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana, with plans to expand. The business model is designed to be asset-light, primarily utilizing co-lending agreements with banks and larger Non-Banking Financial Companies (NBFCs). Revenue is generated through interest on loans and transaction commissions.

In March 2024, the Bengaluru-based startup secured $10 million in a seed funding round co-led by Blume Ventures and Omnivore, with participation from founder Prashant Pitti. This capital is being used to enhance technology, expand the team, and increase its operational footprint. The product portfolio includes loans against both commercial and residential properties, business loans, working capital loans, and options for balance transfers to help clients reduce their EMI burden.

Keywords: MSME lending, Loan Against Property, LAP, fintech, rural financing India, secured business loans, digital lending, co-lending platform, Prashant Pitti, phygital model, property-backed loans, small business finance, asset-light lending, business expansion loans, working capital finance, debt financing, financial inclusion, real estate collateral, quick loan disbursement, online loan application