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CredRight, a data-driven tech enabled NBFC focused on serving nano enterprises, announces that it has raised funding of INR 78 crore through a combination of equity and debt capital. The equity capital funding was led by the Michael and Susan Dell Foundation with wider participation from existing investors including YourNest, Spearhead Capital, 9Unicorns and Accion Venture Lab. Along with this, the debt capital funding was provided by Blacksoil, Caspian Debt, RevX Capital, and Westen Capital.
The platform will utilise this additional capital to expand further into new locations, strengthen its technology stack and work towards positively impacting the lives of small business owners by helping them access formal finance.
“We are on a mission to make formal finance simpler, accessible, transparent, and faster. We have served more than 5,000 nano enterprises, and this fund-raise will help us expand our reach exponentially. Our phygital model, unique underwriting ability and deep understanding of nano enterprises helps us reach remote areas and provide meaningful loans whilst ensuring profitability,” said Neeraj Bansal, cofounder, CredRight.
Cofounded in 2016 in Hyderabad by Neeraj Bansal, along with Vineet Jawa, CredRight is helping bridge the credit gap for millions of small and medium sized enterprises that do not have access to institutional debt as commercial banks.
“We are delighted to partner with the CredRight team in serving the acute financing requirements of over 63 million MSME businesses in India. The financing gap is wider still for nano entrepreneurs, businesses with an annual turnover between INR 1 and 10 million. These growing businesses account for approximately 20% of the MSME segment yet over 90% of them lack access to formal financing from traditional lenders. These entrepreneurs are the future of India, and Credright is creating opportunities for them, their families, and their communities across the country,” said Geeta Goel, country director, Michael & Susan Dell Foundation.
The fintech platform claimed that it has experienced a 10 times growth in its assets under management (AUM) over the past three years. The company is targeting AUM of INR 2,000 crore over the next three years.