Chennai-based non-banking finance company (NBFC) Veritas Finance has raised ₹200 crore in a series D funding round. The round was led by Silicon Valley-based multi-stage investment firm Norwest Venture Partners.
Other existing investors that participated in the round include CDC Group Plc and UK’s Development Finance Institution, and anchor investor P. Surendra Pai, former executive chairman of Murugappa Group.
Avendus Capital acted as the sole financial advisor to Veritas Finance for the transaction.
The fresh funds will be used to boost presence across existing markets, to help augment the capital required by MSMEs for business expansion and for asset creation. A part of the funds will also be used towards strengthening the technology, in order to enhance productivity.
Veritas Finance was founded by Arulmany Duraisamy in 2015. The NBFC enables the underserved micro, small, and medium enterprises (MSMEs) in the country by providing them access to easy credit, in order to meet their working capital and business credit requirements.
The company has a loan book of ₹500 crore, serving more than 21,000 small businesses across the country through a network of 132 branches.
Talking about the investment, Sumer Juneja, Director at Norwest Venture Partners, said, “Veritas Finance is uniquely positioned to drive growth and provide financial services to micro, small and medium enterprises in India. We look forward to working with the Veritas Finance team to further enhance their footprint, services and technology by bringing more value to customers.”
Earlier in April 2018, Veritas Finance raised ₹55 crore in debt funding from Incofin Investment Management and BlueOrchard Finance. According to Crunchbase, Veritas has raised more than $65 million, across all funding rounds.
Recently, NBFC Ess Kay Fincorp raised ₹310 crore in a round led by TPG Growth, along with participation from Norwest Venture Partners and Evolvence India.
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