Mumbai: ICICI Bank-backed startup AdvaRisk, which has been eyeing $20 million in its latest round, is moving closer to finalizing the fundraise with Anicut Capital’s growth fund set to join Fundamentum as an investor in the company, three people familiar with the matter said.
The funding round by the company that helps banks and financial institutions detect fraud and assess borrower risk, will include both primary and secondary share sales, and is expected to close in the next 15-20 days, the first person said on the condition of anonymity as the discussions are still private.
“NABVENTURES, the venture capital arm of NABARD, is an existing investor and may also participate in the round,” a second person said.
“Existing investors, including Sprout Venture Partners, SEA fund and a few other angel investors, may look to exit as a part of the round,” a third person said.
The latest development gives more clarity on the investor mix and secondary component of the round, as AdvaRisk looks to bring in fresh capital while providing some current shareholders an exit. The fundraising also comes as banks fight increasingly sophisticated fraud and step up efforts to track and recover stressed assets.
The companies did not respond to requests for comment until the time of publishing.
that AdvaRisk was in talks to raise $20-25 million, or about ₹190-237.5 crore, from investors including Nandan Nilekani-led Fundamentum.
Founded by Vishal Sharma and Rahul Metkar in 2016, AdvaRisk helps banks and financial institutions identify financial fraud, assess borrower risk and improve recoveries from loan defaults. Its revenue rose from ₹6.7 crore in FY23 to ₹11.8 crore in FY25, while its losses widened from ₹4 crore to ₹10.7 crore over the same period, according to Tracxn.
It builds a database of real estate and other assets linked to defaulters, allowing lenders to identify assets against which they may recover dues. The company also automates the identification of red flags in lender accounts. AdvaRisk claims to work with several major financial institutions, including ICICI Bank, , IDBI Bank, Punjab National Bank and AU Small Finance Bank.
According to data platform Tracxn, the company has so far raised $7.89 million across four equity rounds. The founders collectively hold about 44% of the company. Other shareholders include Sprout Venture Partners, ICICI Bank and Big Capital, according to Tracxn.
The company was last valued at about ₹231 crore in April 2023, according to Tracxn data.
The fundraising attempt comes as India’s largest banks strengthen cyber defences, hire specialized talent and expand insurance coverage amid concerns that increasingly sophisticated artificial intelligence tools could enable faster and harder-to-contain cyberattacks.
On 29 May, Mint reported that fell sharply to 10,114 in fiscal year 2026 (FY26), from 23,722 in FY25 and 35,800 in FY24. However, the amount involved rose to ₹48,021 crore in FY26, from ₹32,803 crore in FY25 and ₹11,013 crore in FY24, according to the Reserve Bank of India’s annual report released in May.