Small businesses-focused non-bank lender Veritas Finance on Wednesday announced raising Rs 1,200 crore from Multiples Private Equity and other investors.
Multiples along with International Finance Corporation (IFC) have put in Rs 1,050 crore while Avendus Future Leaders Fund has deployed Rs 150 crore, according to a statement. The deal comprises a primary issuance of Rs 400 crore and provides a part exit to British International Investment (BII) and Lok Capital, which were early backers of the eight-year-old company started in Tamil Nadu.
The fresh capital will be used to enter new markets and strengthen new product lines, including affordable housing loans, it said. “The fresh capital raised will provide a significant runway for growth, help deepen our existing offerings and expand into the affordable housing space,” the lender’s managing director and chief executive D Arulmany said. The company now operates in eight states through 285 branches which service over 1.15 lakh customers and has over Rs 3,500 crore of assets under management as of March 2023.
The primary service of the company is to provide secured small business loans, and the average ticket size is Rs 5 lakh, the statement said. “Veritas’ in-depth understanding of micro-SME businesses across different geographies combined with strong frameworks has enabled it to build a large, diversified franchise,” Multiples’ managing director Nithya Easwaran said, terming the Veritas book quality as “pristine”.
Pingback: Hi-Green Carbon files draft papers for IPO; to list on NSE Emerge