These funds will support the company’s mission to provide quick business loans to MSMEs and expand its loan book
Red Fort Capital, an investment-grade finance company headquartered in Mumbai, has secured a term loan of Rs 7.5 crore from IKF Finance in Chennai and Rs 4 crore from Usha Financial Services. Totally, the company has secured Rs 11.5 crore in debt funding.
These funds will support the company’s mission to provide quick business loans to MSMEs and expand its loan book. In addition to this, the loan from IKF Finance will contribute to Red Fort Capital's goal of achieving an asset under management (AUM) of more than Rs 175 crore by the end of this financial year.
Founded by Parry Singh, Red Fort Capital has claimed to specialise in providing quick loans to Micro, Small and Medium Enterprises (MSME). The company has claimed to have a turnaround time of seven days.
The lending platform has backed multiple start-up companies in India. It provided Rs 10 crore to the black alkaline water manufacturer Evocus to fulfill its global expansion goals. In addition to this, the company has disbursed loans to MLL Engineers & Contractors and Kanjiravelil Traders Private Limited (KTPL).
In January, Red Fort Capital borrowed Rs 200 crore from the State Bank of India (SBI) to help the country’s micro, small and medium-sized enterprises (MSMEs).
“MSME lending plays a vital role in the Indian economy. Timely business credit to capitalise on time-sensitive opportunities is essential to them, which explains the huge demand for our Quick Business Loans product. This term loan by SBI underscores that India has strong business fundamentals and poor business credit penetration. Red Fort estimates that the credit penetration will 3x in the next decade,” Singh said while borrowing money from SBI.