Dell Foundation led $9.7 M Equity & Debt funding raised by fintech startup CredRight
CredRight, a fintech startup, has raised Rs 78 crore ($9.7 million) using a combination of equity and debt. The Michael & Susan Dell Foundation spearheaded the equity capital funding, with existing investors YourNest, Spearhead Capital, 9Unicorns, and Accion Venture Lab joining in. Blacksoil, Caspian Debt, RevX Capital, and Westen Capital contributed funding for the debt capital.
The Hyderabad-based startup raised $2.7 million in a round led by 9Unicorns and other investors in September 2021.
According to a press release from the company, CredRight will use this money to grow into new markets, strengthen its technology foundation, and work to improve the lives of small business owners by facilitating their access to formal financing.
A data-driven lending platform called CredRight makes it possible for banks and NBFCs to provide credit to MSMEs and small businesses. To reach the 10 million Registered Chit subscribers in India, most of whom live in tier-III and tier-IV cities, a distribution model has been developed.
The business is attempting to close the financing gap, which is even wider for nano entrepreneurs and companies with annual sales of up to Rs 1 crore. Less than 10% of MSMEs in India currently have access to formal financing, according to a Reserve Bank of India (RBI) report. According to CredRight, it has currently worked with more than 5,000 nano businesses.
CredRight, a company founded in 2016 by Neeraj Bansal and Vineet Jawa, recently obtained an NBFC license and boasts one of the lowest NPAs in the sector. Assets under management (AUM), according to the company, have grown 10 times over the last three years, and over the following three years, AUM is expected to reach Rs 2,000 crore.
Despite not having yet submitted its annual financial reports for FY23, the company reported revenue of Rs 3.93 crore and a loss of Rs 4.73 crore in FY22.
