Fintechstartup CredRight Secures $9.7 Mn Funding to Expand Credit Access for MSMEs
FinTech startup, CredRight, based in Hyderabad, has successfully raised approximately $9.7m, a combination of both equity and debt.
Leading the equity capital funding was the Michael & Susan Dell Foundation, according to a report from Entrackr. They were accompanied by existing investors such as YourNest, Spearhead Capital, 9Unicorns, and Accion Venture Lab. On the debt capital front, the funding was generously provided by Blacksoil, Caspian Debt, RevX Capital, and Westen Capital.
The Hyderabad-based fintech, founded in 2016 by Neeraj Bansal and Vineet Jawa, aims to bridge the credit gap for micro, small and medium enterprises (MSMEs) in Tier-3 and 4 towns.
“We have served more than 5,000 nano enterprises, and this fundraise 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 Bansal.
According to the Reserve Bank of India (RBI), only 10 per cent of MSMEs have access to formal finance. This lacuna is compounded by the limited ability of commercial banks and traditional lending institutions to extend their services to remote locations.
CredRight aims to connect lenders with small business owners and avert the latter’s dependence on high-interest moneylenders.
According to the company, nearly 63 million MSMEs in India face a credit shortfall of around $500 billion.
CredRight’s remarkable growth over the past three years, experiencing a 10x increase in its assets under management (AUM), exemplifies its impact. The company is now aiming for an AUM of INR 2,000 crore over the next three years.
Previously,in September 2021, CredRight had another financial win by raising $2.7m in an investment round, led predominantly by 9Unicorns amongst others.
