CredRight raises $2.7M from 9Unicorns, Spearhead Capital, others
CredRight, a fintech startup, announced that it has raised $2.7 million from 9Unicorns, Spearhead Capital, and Venture Catalysts, along with existing investors YourNest, Accion Venture Lab, and other angels.
The Hyderabad-based company plans to use the freshly raised funds to improve the managed loan book, increase the team size, and make investments in tech platforms and analytics.
CredRight is a data-driven lending platform that provides credit to small firms and MSMEs via NBFCs and banks. It has developed a tech-based distribution model to extend to the country’s 10 million registered chit subscribers that are mostly located in Tier 2 and 3 cities.
Speaking about the funding, Neeraj Bansal, Co-founder and CEO of CredRight, said, “CredRight believes that lending is an underwriting and collections business first, and the funding during COVID times is a great validation of our sound operational and productivity metrics. This fund raise will provide CredRight more fuel to transition chit customers to formal lending with access to simple, fast, flexible, and transparent loans.”
Commenting on the investment, Dr. Apoorva Ranjan Sharma, Co-founder and Managing Director, 9Unicorns, said India is run by its 63 million small businesses, but in the lack of accessible capital, they struggle to scale to the next level.
“According to recent reports, less than 15 percent of SMBs in the country have access to institutional lending. CredRight has deployed an end-to-end digital process, which enables small businesses to get a loan in the bank account within three to five business days. Their product has the potential to bring a large-scale revolution in SMB lending and can scale rapidly. We are looking forward to supporting their journey in the coming years,” he said.
Sunil K Goyal, Managing Director and Fund Manager at YourNest Venture Capital, said the company’s underwriting model, employing proxy data from chit funds, enables it to have one of the lowest NPAs in the industry during the pandemic, and with the latest funding round, the company would be able to grow its loan book 4-5X.
CredRight seems to have established a strong presence in the fintech segment with its innovative approach. I believe the company will emerge as a market leader in the time to come. My best wishes to the team of CredRight.Shishir Gupta, Founder and CEO, StartupLanes
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