SarvaGram Reports INR 61 Cr Net Loss in FY25 Despite 70% Revenue Surge Amid Loan Recovery Challenges
Peak XV-backed non-banking financial company (NBFC) SarvaGram reported a sharp rise in its consolidated net loss for the financial year ended March 2025 (FY25), as operational challenges and unsecured loan defaults weighed heavily on its performance. The company posted a consolidated net loss of INR 61 crore, a significant jump from INR 19.8 crore in FY24, despite a robust rise in revenues.
According to data from ICRA Analytics, SarvaGram’s total revenue for FY25 surged 70.5% year-on-year (YoY) to INR 308.7 crore, up from INR 180.98 crore in the previous financial year. The revenue spike reflects the company’s growing footprint in rural and semi-urban financial services, particularly in micro-lending and rural credit solutions.
Read Also :- SarvaGram Reports INR 61 Cr Net Loss in FY25 Despite 70% Revenue
On a standalone basis, SarvaGram recorded a net profit of nearly INR 5 crore, highlighting a relatively healthier performance for its core lending business in isolation. Its standalone revenue stood at INR 274.3 crore, underscoring the significant contribution of the main business entity to overall earnings.
However, the consolidated loss paints a different picture, driven largely by rising delinquencies and delayed recoveries in unsecured loan portfolios. As per ICRA’s assessment, the rise in SarvaGram’s net loss was primarily due to delayed recovery of unsecured loans, leading to a loss of investor participation from the affected loan pools.
Notably, 85% of the loans in these underperforming pools originate from Gujarat and Maharashtra, key markets for SarvaGram. This geographic concentration risk has significantly impacted the company’s ability to recover loans and maintain a healthy balance sheet.
Founded in 2018 by Utpal Isser and Sameer Mishra, SarvaGram aims to bridge the credit gap for underserved populations in rural and semi-urban India. The company offers a range of financial services, including personal loans, agri-finance, and small business loans, often targeting borrowers who lack formal credit histories.
SarvaGram’s mission to empower rural communities through financial inclusion has seen strong investor backing, including from Peak XV Partners (formerly Sequoia Capital India). While the company’s growth in revenue shows promise and reflects increasing demand for credit in India’s rural heartlands, the rise in losses signals a need for stronger credit assessment, risk management, and recovery mechanisms.
Industry experts suggest that as the rural credit sector matures, NBFCs like SarvaGram must strike a delicate balance between growth and asset quality. With unsecured loans posing a higher risk, ensuring geographic diversification and tighter underwriting processes will be key to mitigating future losses.
Conclusion
SarvaGram’s FY25 performance reflects the dual challenges of rapid growth and rising risk. While its revenue has increased impressively by over 70%, the steep jump in consolidated net loss to INR 61 crore—driven by unsecured loan defaults in Gujarat and Maharashtra—has cast a shadow over its financial health. As it continues to serve India’s rural population, the company will need to strengthen recovery mechanisms and refine its lending strategy to ensure long-term sustainability and investor confidence.
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