Sunday, October 01, 2023
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NBFC Fintech CredRight Raises 78 Crore In Equity And Debt

The funding round was led by the Michael and Susan Dell Foundation with wider participation from existing investors including YourNest, Spearhead Capital, 9Unicorns, and AccionVenture Lab

NBFC Fintech CredRight Raises 78 Crore In Equity And Debt
Founders Of CredRight
POSTED ON September 01, 2023 5:24 PM

Fintech start-up CredRight has raised Rs 78 ($9.7 million) through a combination of equity and debt capital. The company provides institutional finance to nano enterprises and MSMEs in Tier 3 and 4 towns. The fintech said that it will use this capital infusion to expand further into new locations and strengthen its technology stacks.  

The equity capital funding was led by the Michael and Susan Dell Foundation with wider participation from existing investors including YourNest, Spearhead 9Unicorns, and AccionVenture Lab. The debt capital funding was provided by Blacksoil, Caspian Debt, RevX Capital, and Westen Capital.

As per a report by Avendus Capital, there has been a massive funding gap in the MSME sector. The report said that out of 64 million MSMEs, only 14 per cent of units have access to credit. It revealed that overall finance demand was around $1955 billion. The fintech is bridging the credit gap for MSMEs that do not have access to institutional debt as commercial banks and traditional institutional lenders find it prohibitive to distribute cost-efficiently in remote locations.     

Speaking on the capital infusion Neeraj Bansal, co-founder of CredRight, said, “MSMEs are the backbone of the Indian economy and access to capital is the fuel that fires them. We have served more than 5,000 nano enterprises, and this fundraiser will help us expand our reach exponentially. Our physical model, unique underwriting ability, and deep understanding of nano enterprises help us reach remote areas and provide meaningful loans whilst ensuring profitability. We are delighted to have successfully executed this fund-raise in a challenging environment and welcome the support of, the Michael and Susan Dell Foundation and, of our existing shareholders.”     

The fintech has experienced a 10x growth in its assets under management (AUM) over the past three years. It is targeting AUM of Rs 2,000 crore over the next three years, claimed the company. 

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