Five Star Business Finance joined the Unicorn Club on March 26, 2021 after raising a $234 million Series D funding round, reaching a $1.4 billion valuation. Headquartered in Chennai, Tamil Nadu, India, the company provides consumer and business loans for SMEs and mortgage financing.
The platform offers loans with simple documentation, cash flow based appraisal, long tenures, and collateral-backed options to meet personal and business financing needs.
Keep reading to learn how Five Star Business Finance became a leading lending unicorn in India.
What Is Five Star Business Finance and What Does It Do?
Founded in 1984, Five Star Business Finance is a financial services company providing loans to individuals and businesses. The company specializes in SME financing, mortgage loans, and consumer credit solutions.
It evaluates borrowers using cash flow based underwriting, provides flexible repayment options, and collateral-backed loans. The platform serves a large base of customers seeking both business growth and personal financial solutions across India.
How Much Funding Has Five Star Business Finance Raised?
1. Seed Round
- Amount Raised: $10 million
- Date: 2000
- Lead Investors: TVS Capital Funds, angel investors
- Purpose: Expand SME lending operations and strengthen underwriting processes
2. Series A Round
- Amount Raised: $50 million
- Date: 2010
- Lead Investors: Madison India Capital
- Purpose: Scale lending portfolio, improve risk management systems, and expand geographic reach
3. Series B Round
- Amount Raised: $100 million
- Date: 2015
- Lead Investors: TVS Capital Funds
- Purpose: Enhance digital lending infrastructure and automate loan processing
4. Series C Round
- Amount Raised: $138 million
- Date: 2019
- Lead Investors: KKR, Peak XV Partners
- Purpose: Strengthen SME lending products and operational scalability
5. Series D Round
- Amount Raised: $234 million
- Date: March 2021
- Valuation: $1.4 billion
- Lead Investors: KKR, TVS Capital Funds, Peak XV Partners
- Purpose: Expand consumer and SME loan offerings and scale nationwide operations
6. Post IPO Funding
- Amount Raised: $939,000
- Date: October 2024
- Lead Investors: Public market participants
- Purpose: Support working capital and operational initiatives following IPO
Total Funding Raised: $522 million Latest Funding Date: October 2024 Latest Known Valuation: $1.4 billion Employee Count: 12,523 as of May 2025
Key Investors
- TVS Capital Funds
- Details: Venture capital and private equity firm investing in growth stage companies
- Focus Areas: Financial services, SMEs, and scalable business models
- Madison India Capital
- Details: Private equity firm investing in mid-market and growth companies
- Focus Areas: Financial services, lending, and technology enabled businesses
- KKR
- Details: Global investment firm providing private equity and growth capital
- Focus Areas: Financial services, consumer lending, and high growth sectors
- Peak XV Partners
- Details: Private equity firm focused on emerging market growth companies
- Focus Areas: Consumer finance, lending, and operational expansion
Where Is Five Star Business Finance’s Headquarters?
Five Star Business Finance is headquartered in Chennai, Tamil Nadu, India, supporting its lending operations, risk management, and digital infrastructure teams.
What’s Next for Five Star Business Finance?
The company plans to expand its SME and consumer lending portfolio, enhance digital underwriting, and scale operations nationwide. Investments in technology, risk management, and customer experience are central to maintaining growth and profitability post-IPO.
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