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Knight FinTech, a Mumbai-based company that builds the technology systems banks and lenders use to manage loans, has raised $23.6 million in a Series A funding round. Accel led the investment. IIFL and Rocket Capital also participated. Total funding now exceeds $30 million.
Knight FinTech operates as the plumbing behind lending. Banks, non-banking finance companies and fintechs use its software to handle credit decisions, loan disbursements, portfolio management and treasury operations. The company does not lend money itself. Instead, it sells software and services to financial institutions that do.
How Knight Makes Money
Four Business Segments
Knight FinTech operates across four main areas. Co-lending software helps banks and NBFCs partner with each other to distribute credit. Digital lending platforms let fintechs and smaller lenders originate loans at scale. Embedded finance tools let non-financial companies offer loans or credit products to their customers. Treasury management software handles cash, investments and borrowing for financial institutions.
The company works with over 150 partners, including State Bank of India subsidiaries, ICICI Securities, Bajaj Auto, IIFL Finance and NABARD. These clients use Knight’s systems to manage the entire lifecycle of loans from application to repayment.
The Numbers
Knight FinTech facilitated over $7 billion in total loan disbursements in its first three years of operation. The company currently manages about $5 billion in active loans. Every quarter, roughly $1 billion in new loans pass through Knight’s systems.
On the treasury side, Knight’s software manages over $125 billion in assets for banks and financial institutions. This includes their cash balances, investments, borrowing arrangements and related activities.
The company has grown at 120 percent year-on-year for three consecutive years, suggesting demand for lending infrastructure remains strong despite recent credit caution in consumer lending.
What’s the Funding Actually For?
Knight FinTech plans to spend the money on four fronts. First, it is building AI tools for risk assessment, fraud detection, automated loan approvals, watching loan portfolios and recovering defaulted loans. Banks increasingly need these capabilities as loan volumes grow and regulators push for tighter underwriting standards.
Second, the company wants to improve its products in embedded finance and digital lending. These segments are growing faster than co-lending and treasury but Knight wants to capture more of that opportunity.
Third, Knight FinTech is expanding outside India into Middle Eastern and Southeast Asian markets where banks are adopting digital lending platforms.
Fourth, the company is investing in infrastructure and hiring to support growth and international operations.
Leadership and Expertise
Knight FinTech brought in Sanat Rao, who used to run Infosys Finacle globally, as an investor and board adviser. Finacle is software that runs core banking systems for thousands of banks. Rao’s experience building banking software at global scale is valuable as Knight expands internationally.
The two founders—Kushal Rastogi and Parthesh Shah—started Knight FinTech in 2019. Rastogi continues as CEO.
Financial Position
Knight FinTech made Rs 31.5 crore in revenue in FY25 but posted a Rs 16 crore net loss. The company is investing heavily in product development and hiring rather than focusing on near-term profitability.
Management is targeting $85-100 million in revenue and plans to manage over $50 billion in assets within four years. These are ambitious targets but achievable if lending volumes continue growing and Knight captures more wallet share from its existing lender partners.
Why Investors Like Knight FinTech
The funding reflects a broader trend in fintech investment. Instead of consumer-facing apps, investors are backing companies that help banks and lenders operate better. Knight FinTech sits between lenders and borrowers, enabling banks to disburse more loans, manage risk better and optimize their balance sheets.
As Indian lending accelerates—driven by government initiatives like lending to MSMEs and rural borrowers—the infrastructure layer becomes more valuable. Knight is positioned to capture value from that growth without directly taking credit risk.
The co-lending business alone is valuable. RBI guidelines allow banks to partner with each other and with NBFCs, and co-lending volumes are growing rapidly. Knight’s software makes those partnerships work smoothly. Treasury management is also critical as banks manage larger portfolios and face more complex market conditions.
Knight FinTech competes with companies like Intact and some in-house systems built by large banks, but the market remains fragmented enough that multiple winners can emerge.
