Knight FinTech, an Indian startup specializing in banking and digital lending  infrastructure, has successfully raised $23.6 million (approximately ₹196 crore) in a  Series A funding round, spearheaded by the global venture capital firm Accel. This  funding marks a pivotal moment in the company’s journey towards growth and  innovation. 

The funding round also attracted investments from IIFL and Rocket Capital, alongside  ongoing support from existing investors such as Prime Venture Partners, 3one4 Capital,  Commerce VC, and Trifecta Capital. The capital was raised through multiple tranches, as confirmed by the company. 

Enhancing Digital Lending and Banking Infrastructure 

Based in Mumbai, Knight FinTech develops essential technology platforms tailored for  banks and non-banking financial companies (NBFCs). Its solutions facilitate co lending, digital lending, embedded finance, and treasury management, enabling  financial institutions to scale their operations effectively while ensuring compliance  with regulations. 

Currently, Knight FinTech collaborates with over 150 ecosystem partners across 85  lenders, having facilitated more than $7 billion in total loan disbursements. The  company also manages assets exceeding $5 billion under its lending platforms. 

A key driver of growth for Knight FinTech is its treasury management system, which  oversees more than $125 billion in assets, establishing the startup as a vital backend  enabler for extensive financial operations.

Emphasis on AI-Driven Financial Products 

With the new funding, Knight FinTech intends to enhance its suite of AI-driven products.  This includes sophisticated solutions for risk intelligence, automated credit  underwriting, fraud detection, portfolio monitoring, and debt recovery. 

The company aims to harness data and artificial intelligence to boost lending accuracy,  minimize fraud, and improve operational efficiency for its banking partners—factors  that are becoming increasingly crucial as digital lending experiences rapid growth in  India. 

Plans for Global Expansion 

In addition to product development, Knight FinTech is gearing up for international  expansion, targeting markets in the Middle East and Asia-Pacific (APAC). These regions  present a robust demand for modern banking infrastructure, particularly in digital credit  and embedded finance. 

To bolster its global aspirations, the company has welcomed Sanat Rao, the former  Global CEO of Infosys Finacle, as an investor and board adviser, bringing invaluable  expertise in core banking and enterprise financial systems. 

Founders and Business Model 

Knight FinTech was co-founded by Kushal Rastogi and Parthesh Shah. Rastogi has a  background in developing AI-driven trading systems, while Shah has experience in  financial services from his roles at Bloomberg Singapore and Deloitte. 

The company operates on a revenue-diversified model, generating income through  software licensing, implementation fees, and recurring charges tied to assets under  management. Currently, Knight FinTech employs over 350 professionals dedicated to  product development, client success, and operational support. 

Building for Growth and Sustainability 

Reflecting on the fundraising achievement, co-founder Kushal Rastogi emphasized the  company’s commitment to strong unit economics, resilient systems, and long-term  partnerships, all while keeping customer-centric innovation at the forefront. 

With the backing of Accel and increasing adoption among lenders, Knight FinTech is  positioning itself as a comprehensive financial infrastructure platform, poised to  support the next wave of digital lending growth in India and beyond.