Chennai-based Veritas Finance gets Rs 30 crore from Sarva Capital, others
It will use the funds for expansion as well as increasing the range of financial services, besides using a sizable amount of the capital for disbursing loans.
The series A round of fundraising makes Veritas Finance one of the highest capitalised startups in micro, small and medium enterprises. It will use the funds for expansion as well as increasing the range of financial products and services, besides using a sizable amount of the capital for disbursing loans.
“Micro and small businesses segment account for the largest share of the credit demand gap; 97% of the debt gap is from micro and small enterprises out of the estimated debt gap of Rs 29.3 lakh crore,“ said D Arulmany, founder of Veritas Finance, “Our typical customers would be small and micro entrepreneurs like a tea stall owner, bakery owner, small restaurants and provision stores.“
He said such individuals have monthly salary of Rs 25,000-60,000 and they will be extended loans of Rs 4 lakh on average for use as working capital, business expansion and asset creation.