Indian fintech firm Razorpay co-leads $1m round of MSME edtech startup

MSMEx, an India-based edtech startup for micro, small and medium-sized enterprises, has raised US$1 million in its pre-series A financing round led by fintech firm Razorpay and investment firm TNF Investments.

The MSMEx team / Photo credit: MSMEx

The new investment will be used to develop new intuitive technologies, including a deep learning-based recommendation system, a live chat system, and an AI-based behavior analytics system. It will also scale the firm’s operations using the fresh funds.

Founded in 2019, MSMEx offers live business sessions for MSME owners, and connects them with business experts for online interactions and support. Business owners and entrepreneurs can also use the platform’s live chat community and talk to experts through one-on-one video calls for mentoring and leadership advice.

“Micro and small enterprises in India and other developing economies are demonstrating explosive growth in their numbers and ambitions,” said Samir Khosla, managing partner at TNF Investments. “MSMEx’s unique positioning addresses the core challenges faced by the entrepreneurs leading these enterprises, [such as] access to high-quality business advice, focused mentorship, actionable business education – all within a tight budget and available on demand.”

The company aims to cater to 10 million MSMEs in the next five years, said co-founder Amit Kumar. Currently, the platform has over 500,000 users representing MSMEs from over 1,200 cities across India.

MSMEx said it has registered a 55% growth in monthly active users since January. It currently offers content in English and will soon launch content in Hindi and other regional languages to cater to a larger user base.