Saarathi Finance, a greenfield Non-Banking Financial Company (NBFC), has announced a strategic partnership with Nucleus Software to launch a digital-first lending solution aimed at serving semi-urban and rural areas in India. This collaboration marks a significant step towards bridging the MSME credit gap in the country.

Technology-Driven Approach

Saarathi Finance has selected Nucleus Software's FinnOne Neo® platform, a market-leading digital lending solution, to power its operations. The partnership will leverage a cloud-ready, API-driven lending stack that includes:

• Customer Acquisition System
• Loan Management System
• Collections
• Mobility solutions

This comprehensive suite will enable Saarathi Finance to manage its Loan Against Property businesses efficiently and provide a seamless digital experience to its customers.

Targeting Underserved Markets

Saarathi Finance, backed by marquee investors including TVS Capital Funds, Lok Capital, Evolvence Equity Partners, and Paragon Partners, has raised a substantial fund of ₹475.00 crore. The company's focus is on serving the underserved MSME segments in tier 3 and tier 4 towns across India. Their loan offerings include:

Strategic Vision

Mr. Vivek Bansal, Founder & CEO of Saarathi Finance, emphasized the company's mission: "We are on a mission to transform MSME lending by building a digital-first platform that delivers credit with speed, precision, and purpose. Partnering with Nucleus Software strengthens our ability to accelerate go-to-market efforts while ensuring compliance with regulatory standards and reducing the service time to my customers."

Nucleus Software's Expertise

Nucleus Software brings extensive experience to this partnership. The company serves over 200 banks and financial institutions across 50 countries. Its platforms manage:

• Over $15.00 trillion in yearly transactions
• 26 million transactions daily through its globally integrated transaction banking platform
• $1.20 trillion in loan values globally

Mr. Parag Bhise, CEO & Executive Director of Nucleus Software, expressed enthusiasm about the partnership: "We are delighted to partner with Saarathi Finance at such a defining stage in their journey. FinnOne Neo® is engineered to help next-gen lenders like Saarathi Finance scale rapidly while staying agile, compliant, and customer-centric."

Impact and Future Outlook

This collaboration between Saarathi Finance and Nucleus Software is set to revolutionize MSME lending in India's semi-urban and rural areas. By combining Saarathi's vision of financial inclusion with Nucleus Software's advanced technology platform, the partnership aims to create a more accessible, responsible, and tailored credit solution for small businesses across Bharat.

The digital-first approach, coupled with local insights, positions Saarathi Finance to make a significant impact in addressing the credit needs of underserved entrepreneurs. As the platform launches, it is expected to contribute to the growth and development of MSMEs in tier 3 and tier 4 towns, potentially transforming the landscape of rural finance in India.

Nucleus Software , a leading provider of lending and transaction banking products for the global financial services industry, has announced ambitious plans to enhance its artificial intelligence (AI) capabilities and expand its international presence. The company's strategic initiatives, revealed in its Q1 financial results, signal a strong focus on innovation and global growth.

AI-First Approach

In a move to stay at the forefront of financial technology, Nucleus Software is placing a greater emphasis on predictive and responsible AI across its product lines. This strategic shift aims to enhance the company's lending and transaction banking solutions, focusing on explainability, automation, and decision intelligence. The AI-driven enhancements are expected to strengthen the company's product roadmap, catering to the evolving needs of future-ready digital banks.

Global Expansion and Leadership

Nucleus Software is set to expand its operations in Japan and Southeast Asia, leveraging its long-standing presence in these markets. To support this growth, the company has appointed a new Global Head of Marketing to lead its brand acceleration and digital growth initiatives. Additionally, a senior leader has been onboarded in Japan to bolster regional customer delivery capabilities.

Strategic Execution and Risk Management

In a significant move towards enterprise-wide alignment, Nucleus Software has implemented Hoshin Kanri, a Japanese strategic execution methodology. This approach aims to drive unified goal-setting, accountability, and long-term value delivery across key teams. The company has also reinforced its Risk Management function to ensure continued operational resilience, regulatory compliance, and global scalability.

Financial Performance

The company's Q1 financial results reflect a strong start to the fiscal year:

Management Commentary

Mr. Vishnu R. Dusad, Co-founder and Managing Director of Nucleus Software, commented on the performance: "We continue to build on a strong foundation of innovation, purpose, and values. The convergence of AI, global talent, and strategic clarity empowers us to deliver lasting impact to our customers and the broader financial ecosystem."

Mr. Parag Bhise, Chief Executive Officer, added: "Q1 marks a confident start to the fiscal year. Our strategic investments in people, platforms, and planning methodologies are translating into consistent performance and readiness for scalable global growth. We remain focused on delivering value-led transformation for our customers."

As Nucleus Software moves forward with its AI-driven strategy and global expansion plans, the company is well-positioned to capitalize on the growing demand for innovative financial technology solutions in the global market.