Veritas Finance Secures Investment Of INR 1200 Crore The company plans to use the fresh capital to enter new markets and strengthen its new product lines, including affordable housing loans
By Teena Jose
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Veritas Finance Pvt Ltd (Veritas) has announced INR 1,200 crore investment led by Multiples Private Equity (PE) along with its co-investors including International Finance Corporation (IFC) to expand access to capital for India's micro, small and medium enterprises. The investments came from Multiples Private Equity (INR 1,050 crore) and Avendus Future Leaders Fund (INR 150 crore). The deal comprises a primary issuance of INR 400 crore and provides a partial exit to early investors, British International Investment (BII) and Lok Capital.
"In addition to Multiples, the current capital raise will also see Avendus FLF, known for backing future leaders, partnering with Veritas. The fresh capital raised will provide a significant runway for growth, help deepen our existing offerings and expand into the affordable housing space. We strongly believe these partnerships will further catalyse our mission to serve the underserved," said D. Arulmany, MD and CEO of Veritas.
Veritas focuses on the large and underserved MSME financing market across semi-urban and rural geographies. The company claimed that it has scaled up significantly over the last 6 years and has built deep on-ground operating experience and market knowledge. The company plans to use the fresh capital to enter new markets and strengthen its new product lines, including affordable housing loans.
"Veritas' in-depth understanding of micro-SME businesses across different geographies combined with strong frameworks has enabled it to build a large, diversified franchise. Arulmany, along with the top-notch management team has scaled the business while maintaining pristine quality. We are delighted to partner with him to build a market leading, distinctive financial institution," said Nithya Easwaran, managing director, Multiples Alternate Asset Management.
Veritas incorporated on April 30, 2015, is a non-deposit taking NBFC, lends to borrowers engaged in micro, small and medium enterprises (MSME) sector with limited access to formal financial services.
