FinTech startup, CredRight, based in Hyderabad, has successfully raised approximately $9.7m, a combination of both equity and debt.
Leading the equity capital funding was the Michael & Susan Dell Foundation, according to a report from Entrackr. They were accompanied by existing investors such as YourNest, Spearhead Capital, 9Unicorns, and Accion Venture Lab. On the debt capital front, the funding was generously provided by Blacksoil, Caspian Debt, RevX Capital, and Westen Capital.
Exploring the core of what CredRight does, it operates as a data-driven lending platform. Its main aim is to facilitate credit for small businesses and MSMEs by collaborating with NBFCs and Banks. The startup has curated a unique distribution model, targeting India’s 10 million registered chit subscribers. These subscribers predominantly reside in the tier-III and tier-IV cities of the nation.
The primary goal for the newly-acquired funds is expansion. CredRight plans to break into new territories, reinforce its technology infrastructure, and strive to make a substantial difference in the lives of small business owners. By assisting these entrepreneurs to gain access to formal finance, the company aims to address a prevalent issue, as mentioned in their press statement.
The challenge of accessing finance is particularly pronounced for nano entrepreneurs, with annual turnovers reaching up to Rs 1 crore. Data from the Reserve Bank of India (RBI) highlights a concerning fact: less than 10% of MSMEs in India have access to formal finance avenues. However, CredRight is determined to alter this narrative. As of now, they’ve served an impressive 5,000 nano enterprises.
CredRight’s inception dates back to 2016, with Neeraj Bansal and Vineet Jawa at its helm. The firm not only recently acquired an NBFC license but also boasts of having one of the most minimal NPAs in its sector. According to the company’s insights, they have witnessed a staggering 10x growth in assets under management (AUM) over the previous three years. The ambition? Targeting an AUM of Rs 2,000 crore in the coming three years.
Previously, in September 2021, CredRight had another financial win by raising $2.7m in an investment round, led predominantly by 9Unicorns amongst others.
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