axiTrust in Talks to Raise $5 Million — Startup Funding India, October 2026

Fintech startup axiTrust is in talks to raise around $5 million in a Series A funding round, according to an Inc42 report dated 26 October 2026. The round is expected to be led by Singapore-based Argor.vc, with participation from existing investor General Catalyst. The deal is reported as in talks, not closed, so the final size and terms could still change. It is one of the notable reported deals in startup funding in India this week.

What axiTrust does

Founded in 2024 by Aditya Tulsian (CEO), Rajeev Chari (COO) and Mukund Daga (CRO), axiTrust issues, underwrites and manages digital surety bonds, an insurance-backed alternative to traditional, collateral-heavy bank guarantees. Instead of blocking capital as collateral, a buyer pays a premium to secure the guarantee, freeing working capital and reducing financial strain for businesses.

The company says more than Rs 15 lakh crore of MSME working capital is locked up as collateral for bank guarantees. Surety bonds, enabled by Insurance Regulatory and Development Authority of India guidelines and amendments to government procurement norms, are positioned as a way to unlock that capital and expand credit access for smaller businesses.

Where the round fits

The reported Series A comes almost a year after axiTrust raised $2.6 million in a seed round led by General Catalyst. Other investors on its cap table include Atrium Angels, YAN Network and Supermorpheous. The fresh capital, if it closes as reported, will help axiTrust build digital infrastructure to accelerate adoption of its surety bonds offering across banking, insurance and procurement.

For founders watching fintech, the story is a reminder that infrastructure plays, not just consumer apps, attract follow-on capital when they attach to a large, measurable bottleneck. Here the bottleneck is collateral: every bank guarantee that ties up cash or credit limits is working capital a growing business cannot use.