Knight FinTech Raises $23.6M to Power AI-Driven Lending Expansion

Knight FinTech, a Mumbai-based startup that has quietly become one of the more influential infrastructure players in India’s digital lending scene, has secured $23.6 million in Series A funding. The round was led by Accel, with support from IIFL, Rocket Capital, and earlier backers such as Prime Venture Partners and 3one4 Capital. The investment was completed in several tranches, which isn’t unusual for companies building deep tech platforms—these things take time and, well… a bit of a faff to structure.

The company has built its reputation on powering the backend of co-lending, digital lending, embedded finance, and treasury systems used by banks and non-bank financial institutions. Instead of chasing consumers directly, Knight FinTech focuses on the pipes beneath the financial system. I’ve always reckoned that infrastructure startups—especially in fintech—often have the most staying power, even if they don’t make the flashiest headlines on Arageek.

Today, Knight FinTech works with more than 150 partners and 85 lenders, supporting over $7 billion in cumulative loan disbursements. More than $5 billion in assets run through its lending platforms, while its treasury system manages an eye-watering $125 billion in assets. As someone who’s met countless founders across the MENA region trying to modernise legacy banking stacks, I can’t help thinking parts of this model would be spot on for regional adoption.

The fresh capital will go toward expanding the startup’s AI-driven offerings—everything from risk intelligence and automated credit underwriting to fraud detection and debt recovery. These upgrades are meant to help lenders make faster, more accurate decisions as loan volumes rise. And believe it or not, those same tools are exactly what emerging markets often lack, especially in places where traditional credit scoring barely exists.

The company is also gearing up for expansion into the Middle East and the Asia-Pacific, two regions where digital lending is growing but still fragmented. To support this move, Knight FinTech has brought on Sanat Rao, formerly the global CEO of Infosys Finacle, as an investor and board adviser. His arrival signals the company’s ambitions to partner with larger banks and navigate cross-border regulatory landscapes—which can be a minefield if not handled properly.

Knight FinTech was founded by Kushal Rastogi and Parthesh Shah. Rastogi previously built AI-driven trading systems, while Shah worked at Bloomberg Singapore and Deloitte, giving the duo a blend of technical and financial expertise. Rastogi has spoken about the company’s focus on sustainable unit economics and a multi-engine product strategy—co-lending and treasury solutions already run at scale, while embedded finance and digital lending keep accelerating.

Their revenue model mixes software licensing, implementation fees, and recurring charges tied to assets under management—a structure that grows alongside their clients’ portfolios. The company employs more than 350 people, many of them focused on product development and compliance. On the flip side, the challenge will be maintaining quality as they push into markets where rules differ wildly. I’m not a fan of how some fintechs rush expansion and end up overstretched; hopefully Knight FinTech avoids that trap.

Still, with Accel’s support and a strong base of institutional partners, the startup is positioning itself as a foundational layer for the next stage of AI-powered lending across borders. And if their playbook travels well, I can easily imagine founders from the MENA region—who I often meet during Arageek events—drawing inspiration from this kind of disciplined, infrastructure-first growth. It’s definately one to watch.

🚀 Got exciting news to share?

If you're a startup founder, VC, or PR agency with big updates—funding rounds, product launches 📢, or company milestones 🎉 — AraGeek English wants to hear from you!

✉️ Send Us Your Story 👇

https://en.arageek.com/send-us-your-story-or-a-news-tip