Indian MSME lender, Veritas Finance has raised RS 2bn ($27m) in a Series D investment round featuring Norwest Venture Partners.
The non-bank lender provides its services to micro, small and medium-sized enterprises (MSME) across seven Indian states.
Veritas offers long-term finance for business expansions as well as short-term loans for working capital needs. Since launching in 2015 Veritas has developed a loan book of Rs.500 crores ($68m) and boasts a costumer base of over 21,000 people.
Veritas CEO D Arulmany said “MSMEs are the backbone of the Indian economy. Considering they are an underserved segment, they continue to need access to formal credit system. As a company, we have constantly looked at innovating our products and services by building a robust credit appraisal system.
“Through this round of funding, besides expansion, we will also strengthen our technology which will help us achieve higher productivity and bring down the cost of servicing micro-businesses.”
According to figures from the Indian ministry, the county is home to more than 60 million MSMEs which contribute to 45 per cent of all exports. The sector also represents around 69 per cent of employment in in India.
Nortwest has been joined by existing investors DC Group Plc, the UK’s Development Finance Institution and anchor investor P Surendra Pa.
Earlier this year the FinTech raised Rs55 crore ($7.5m) in debt financing from Incofin Investment Management and BlueOrchard according to Paper.VC.
Earlier this year Jaipur-based non-banking financial company Finova Capital raised $6m over two tranches from Sequoia India.
Sequoia India held a $695m final close for its sixth investment fund in August, short of the $920m it gathered for its fifth fund.
Indian online lending platform FinREQ reportedly closed an undisclosed funding round led by Bennett, Coleman & Co through its Brand Capital arm. While LenDen Club, a Mumbai-based peer-to-peer lending platform, landed a $500,000 equity investment from three investors.
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