Veritas Finance raises Rs 350 cr in Series E investment round

The Series E investment witnessed the participation from new investor Kedaara Capital along with the existing investors Norwest Venture Partners (NVP), Lok Capital Growth Fund and from the family of P Surendra Pai, an anchor investor.

The company intends to use the additional capital to further penetrate existing markets to augment the capital required by MSMEs for business expansion, working capital and for asset creation backed by transformative technology, robust credit appraisal systems and quality customer service.

Arulmany, MD-CEO, Veritas Finance, said, “In a diverse nation like ours with different cultures, environment and opportunities, the significant role that informal micro enterprises play in building the economy can never be ignored.” He added, “But, several reasons, starting from their unorganised nature of these enterprises, their size, location, banking habits etc., have hindered them in accessing debt and they continue to face challenges.”

Promoted in 2015 by D Arulmany, Veritas Finance has created a loan book of Rs 1,308 crore as on February 29 with a customer base of 48,638 across eight states and a union territory with 201 branches backed by 1,840employees.

Choosing to focus on the needs of these enterprises in the MSME segment, Arulmany said they had drawn a vision map for Veritas with three distinct phases of growth, back in October 2015. Reaching a loan book of Rs 1,000 crore in the first four years of operations was the first milestone of the Vision Map, the top executive said.

“Having successfully crossed the phase I of the vision map, we are now embarking on an even more exciting journey into phase II. We are aware that this would be a journey where the ascent gets steeper, the terrains difficult and the milestones bigger and we are fortunate to have always been supported by investors who not only understand the financial services industry but also have significant experience in building best in class organisations,” said Arulmany.