Capital Raised In Seed Round to Unlock MSME Liquidity through Surety Bonds
FinTech BizNews Service
Mumbai, November 26, 2025: In a move that signals India’s next major financial unlock, AxiTrust has raised Rs23.5 crore in seed funding, led by General Catalyst with participation from other marquee investors and angels including Atrium Angels, YAN Network, Supermorpheous and others. The fundraise will aid in building the digital infrastructure that will power the large-scale adoption of surety bonds across India’s banking, insurance, and procurement ecosystem.
The fundraise comes at a pivotal time for India’s MSME economy. Over Rs15 lakh crore of MSME working capital remains tied up as collateral for bank guarantees; capital that could be freed through surety bonds. By replacing traditional, collateral-heavy guarantees with insurance-backed, digital alternatives, surety bonds can unlock liquidity, expand credit access, and strengthen trust in business transactions.
This is more than a fintech opportunity - it’s a structural shift in India’s financial infrastructure. With IRDAI’s 2022 guidelines and amendments to the General Financial Rules (GFR) formally enabling surety bonds, and PSUs beginning adoption in 2023–24, the reform now enters its execution phase; one that demands robust digital infrastructure to scale efficiently.
“The story of India’s MSME financing reform is now about execution,” said Aditya Tulsian, CEO and Co-Founder, AxiTrust. “For decades, access to growth capital has been held back by the rigidity of collateral. Surety bonds mark a paradigm shift, enabling liquidity to flow freely through the economy. This is about building a new trust architecture for India’s financial system, one that expands opportunities for MSMEs to increase participation across Government and private supply chains.”
AxiTrust is building the digital rails connecting insurers, financial institutions, and government procurement platforms, enabling seamless issuance, underwriting, and management of surety bonds that replace traditional bank guarantees. The company serves as the infrastructure enabler of this new surety economy, helping banks, insurers, and platforms deploy surety-backed solutions securely, at speed, and at scale.
Aakanksha Sharma, Principal at General Catalyst, said, “AxiTrust is addressing a fundamental gap in India’s financial ecosystem - the need for a scalable trust infrastructure for
MSMEs. We see this as a defining moment in India’s fintech evolution. With strong policy tailwinds, digital readiness, and a team that deeply understands MSME financing, we believe AxiTrust is well-positioned to build the foundation for a new financial category”
Globally, surety bonds form the backbone of multi-trillion-dollar procurement and infrastructure markets, helping businesses of all sizes participate in growth opportunities. With clear regulation, government adoption, and the digital infrastructure now being built, India is poised to accelerate that evolution. Founded by serial tech entrepreneurs Aditya Tulsian (CEO), Rajeev Chari (COO), and Mukund Daga (CRO)--who bring nearly a decade of experience in building for the Indian fintech ecosystem--AxiTrust’s fundraise marks a defining step in transforming surety from a regulatory framework into a live financial infrastructure that can power India’s next phase of MSME-led growth.
