Optimo Capital: 10 Key Things You Must Know

Overview

Optimo Capital is an innovative financial technology company headquartered in Bengaluru, India, specializing in collateral-free and property-backed loans targeted primarily at small and medium-sized enterprises (SMEs) and micro, small, and medium enterprises (MSMEs). Founded in 2023 by Prashant Pitti, an entrepreneur known for co-founding EaseMyTrip, Optimo Capital addresses the significant credit gap faced by Indian MSMEs by leveraging technology, including AI and digital land records, to offer quick and affordable loan access. This approach is transforming access to formal credit for millions of underserved business owners, especially in non-metro cities across India. Here, we explore 10 important and intriguing aspects of Optimo Capital.

1. Origins and Founding Vision

Optimo Capital was launched in 2023 by Prashant Pitti with a mission to serve underserved MSMEs in India with affordable and accessible credit solutions. Recognizing that less than 15% of MSMEs had access to formal credit channels, Optimo was established as a Non-Banking Financial Company (NBFC) focused on democratizing finance via technology-led lending. The company aims to unlock India's largest unused asset base — land and property — to enable entrepreneurs to grow their businesses with secured loans. The fintech is committed to financial inclusion and economic growth in rural and semi-urban markets.

2. Unique Loan Products: Loan Against Property (LAP) and Collateral-Free Loans

Optimo Capital offers specialized lending products, with a key focus on Loan Against Property (LAP). This product allows business owners to leverage their owned homes, shops, or other property assets as collateral to obtain larger loans at more competitive interest rates compared to unsecured business loans. Additionally, Optimo provides collateral-free loans tailored to MSMEs, which help widen access to capital without the traditional barriers of physical collateral. This blending of secured and unsecured fintech lending solutions addresses diverse financing needs for small businesses.

3. Technology-Driven Lending Process

Optimo Capital leverages advanced technology such as artificial intelligence (AI), machine learning, and access to over 77 lakh digital land records to streamline loan application and approval processes. This technology enables instant property valuation, title verification, and automated in-principle sanctions, significantly reducing loan approval times from weeks to just hours. Digital tools also facilitate seamless customer onboarding, with approval and disbursal times within a week, making credit faster and more accessible compared to conventional banks and NBFCs.

4. Rapid Growth and Financial Performance

Since its inception, Optimo Capital has demonstrated rapid growth, building a loan book valued at approximately Rs 350 crore within just 18 months. Unlike many fintech startups struggling to achieve profitability, Optimo became profitable within three months of operations and has sustained profitability for over 15 months. This strong financial performance underscores the viability and scalability of its tech-first lending model for serving the vast underserved MSME credit market in India.

5. Geographic Presence and Market Focus

Optimo Capital operates across 56 cities in multiple Indian states including Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Madhya Pradesh. The company primarily targets Tier 2 and Tier 3 cities and rural areas, where formal lending options are limited and MSMEs face severe credit constraints. By focusing on these regions, Optimo aims to tap into a large, underserved segment of the economy, providing tailored financial products that meet the unique needs of small-business owners outside of major metro hubs.

6. Funding and Investment Backing

Optimo Capital has successfully raised significant capital through funding rounds, most notably a Series A round that garnered $17.5 million (approximately Rs 150 crore). Investors include the founder Prashant Pitti himself along with venture funds such as Blume Ventures and Omnivore. These funds support the company's expansion plans, enhance AI capabilities, and scale operations to reach more cities and deeper into India's emerging markets for mid-ticket LAP loans.

7. Impact on MSMEs and Financial Inclusion

By providing faster approvals, lower interest rates, and flexible repayment options, Optimo Capital empowers MSMEs with the critical working capital and growth financing often unavailable through traditional lenders. The company’s mission to democratize finance is helping bridge the credit gap, promoting entrepreneurship and economic development. With more than 4.8 crore small business owners lacking credit histories, Optimo’s tech-enabled solutions create new financing pathways that encourage business expansion and job creation.

8. Competitive Landscape and Market Opportunity

Optimo Capital operates in a competitive fintech NBFC environment alongside players like Lendingkart Technologies and Axis Financial Shakti. The mid-ticket LAP market in India is estimated to be worth Rs 22 lakh crore, yet only around 28% of loan demand is currently met. Optimo’s tech-first, AI-enabled approach positions it to capture a significant share of this underpenetrated market, particularly focusing on property-backed loans to MSMEs, a segment poised for growth due to increasing digitization and economic reforms.

9. Customer Experience and Support

Optimo Capital offers a simple and hassle-free loan application process complemented by accessible customer support channels, including WhatsApp-based communication for loan approvals. Customer reviews highlight competitive interest rates, flexible terms, and timely loan disbursal as key strengths. The use of digital land records and AI optimizes the customer journey, while assistance through loan application, repayment support, and balance transfers ensures a comprehensive financial service to small-business borrowers.

10. Future Prospects and Expansion Plans

With its current success and strong investor backing, Optimo Capital has plans to expand its geographic footprint further into non-metro and rural Indian markets. The company aims to deepen AI integration for even faster loan underwriting, build co-lending partnerships with banks and NBFCs, and innovate new financial products for MSMEs. As the Indian economy continues to modernize and digitize, Optimo is well-positioned to become a leading fintech lender, driving inclusive growth and transforming the secured lending landscape in India.

Conclusion

Optimo Capital represents a powerful example of how technology-driven fintech innovation can revolutionize credit access for underserved MSMEs in India. By unlocking property assets and streamlining loan processes through AI and digital records, it effectively addresses a critical economic challenge—the MSME credit gap. With strong growth, profitable operations, significant funding, and ambitious expansion plans, Optimo is poised to make a lasting impact on India’s financial ecosystem. As small businesses form the backbone of India’s economy, the evolution of companies like Optimo Capital suggests a promising future where access to capital is no longer a barrier to entrepreneurial success.