Five Star Business Credits (‘Five Star’), a small business finance company that provides secured loans to micro, small and medium enterprise (MSME) customers, has secured its maiden institutional round of funding.
It has just finalised funding from Matrix Partners India.
The funding details are not disclosed, however.
Matrix Partners is an investment firm with Rs.3,000 crore under management. The firm invests in companies targeting the Indian consumer market at the seed, early and early growth stages. It has invested in several market-leading companies such as Muthoot Finance (gold loan NBFC), TreeHouse Education (pre-schools), Cloudnine (maternity and infant care chain), Mswipe (mobile POS), Verse/NewsHunt (vernacular mobile platform) and Quikr (online classifieds).
Five Star has catered to more than 5,000 MSME customers over the last five years. The company also provides loans for the purpose of home improvement to MSME customers, says a release. “We have built a unique credit assessment model for deserving customers that run small but healthy businesses. We are excited to partner Matrix Partners India as our first institutional investor,” said D. Lakshmipathy, Managing Director of Five Star.