Veritas Finance Private Limited, a Chennai-based Non-Banking Finance Company (NBFC) focused on lending to MSMEs, has raised Rs 2 billion through series D funding. The money was raised from Norwest Venture Partners X, and from existing investors like CDC Group Plc, UK’s Development Finance Institution and P Surendra Pai, an anchor investor.
The company proposes to use the additional capital to further penetrate existing markets to augment the capital required by MSMEs for business expansion, working capital and asset creation backed by transformative technology.
D Arulmany, MD & CEO, Veritas Finance said that MSMEs are the backbone of the Indian economy. Considering they are underserved, they continue to need access to a formal credit system, he said.
Through this round of funding, besides expansion, Veritas will also strengthen the technology which will help the company achieve higher productivity and bring down the cost of servicing micro-businesses.
Promoted in 2015 by Arulmany, Veritas Finance has created a loan book of Rs 5 billion since inception in 2015. The company has a customer base of more than 21000 and is present across seven states with over 132 branches backed by 1125 employees.
Company's existing institutional investors include CDC Group Plc, Caspian Impact Investment Adviser Private Limited, Lok Capital Growth Fund and P Surendra Pai.