Chennai-based NBFC Veritas Finance is raising INR 440 Cr ( ~58.9 Mn) in a fresh round of funding. As per the regulatory filings accessed by Inc42, the startup will be issuing 1,33,34,467 equity shares to Norwest Venture Partners, Kedaara Capital, Growth Catalysts, Evolvence India Fund, and Caspian Impact Investment.
As per the filings, the round of funding will be co-led by Norwest Venture Partners and Kedaara Capital Fund who will be infusing INR 185 Cr respectively for 56,06,061 equity shares.
The startup intends to utilise the fresh capital to carry its NBFC business and expand its operations through geographical expansion.
The startup had last raised INR 350 Cr in its Series E round led by Kedaara Capital along with existing investors Norwest Ventures Partners, Lok Capital Growth Fund, and from the family of of P. Surendra Pai. Veritas Finance also is backed by the UK-based CDC Group.
Founded in 2015 by D Arulmany, Veritas Finance focuses on lending to micro, small, medium enterprises. Till February 2020, it has created a loan book of INR 1,308 Cr with a customer base of 48,638 present across eight states and one union territory with 201 branches backed by 1840 employees.
As per market experts, digital lending is considered to be one of the fastest growing segments in India’s evolving fintech industry. Pandemic induced stringent lockdowns have further increased the demand for digital lending. Small businesses owners who are worst impacted by the pandemic prefer to go for a NBFC rather than banks as banks require collaterals, have higher interest rates along with rigid repayment structures.
According to Inc42 Plus analysis, Indian lendingtech startups raised about $547 Mn across 28 deals in Q3 2021.
As per a statista report, India’s market of digital lending grew from $9 Bn in 2012 to $150 Bn in 2020. This trend is likely to push the digital lending market to touch $350 Bn by 2023.
The story first appeared on Inc42 on October 6 at 1:55 PM