Chennai

Chennai-based finance company raises ₹350 crore

Chennai head-quartered, Veritas Finance Private Limited (Veritas Finance), Non-Banking Finance Company (NBFC) focused on lending to micro, small and medium enterprises (MSME) has raised ₹350 crore through a Series E investment. This round saw participation from new investor Kedaara Capital along with the existing investors Norwest Venture Partners (NVP), Lok Capital Growth Fund and from the family of P. Surendra Pai, an anchor investor. Spark Capital was the exclusive financial advisor to Veritas Finance.

The company proposes to use the additional capital to further penetrate into existing markets to augment the capital required by MSMEs for business expansion, working capital and for asset creation backed by transformative technology, robust credit appraisal systems and quality customer service.

Promoted in 2015 by D. Arulmany, Veritas Finance has created a loan book of ₹1,308 crore as on February 29, 2020 with a customer base of 48,638. Mr. Arulmany, who is the MD and CEO, Veritas Finance said, “Choosing to focus on the needs of these enterprises in the MSME segment, we had drawn a vision map for Veritas with three distinct phases of growth, when we commenced the business in October 2015. Reaching a loan book of ₹1,000 crore in the first four years of operations was the first milestone of the Vision Map,” he said. “Having successfully crossed the phase I of the vision map, we are now embarking on an even more exciting journey into phase II,” he added.

Shiv Chaudhary, managing director of Norwest Venture Partners, India said, “MSMEs are engines of India’s economic growth and key enablers for employment generation at the grass-root level. We are excited to double our investment in Veritas Finance by allocating an additional ₹200 crore in this round”.

India is home to more than 60 million MSMEs who contribute to 45% of the exports and it forms the highest share of the employment sector in India, contributing around 69% to it.

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Printable version | Oct 1, 2020 11:00:46 AM | https://www.thehindu.com/news/cities/chennai/chennai-based-finance-company-raises-350-crore/article31106734.ece

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