Veritas Finance on Wednesday announced the securing of investment worth Rs 1,200 crore with an aim to expand its access to capital for the country’s micro medium and small-scale enterprises.
The investment was secured from Multiples Private Equity at Rs 1,050 crore and Avendus Future Lenders Fund at Rs 150 crore. The deal comprises a primary issue of Rs 400 crore and opens space for the part exit of the company’s early investors, British International Investments and Lok Capital. Veritas specializes in MSME funding in rural and semi-urban areas. The company is based in Tamil Nadu and made extensions to eight states and one union territory, currently operating over 285 branches.
Veritas serves over 115,000 customers and an AUM of Rs 3,500 crore and provides small business loans with an average of Rs 5 lakh.
“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 significant runway for growth, help deepen our existing offerings and expand into the affordable housing space. We strongly believe these partnerships will further catalyze our mission to serve the underserved.” said D Arulmany, MD and CEO of Veritas.
He also added that in the past six years Veritas has seen an exponential growth, acquiring extensive operational expertise and market understanding. The company also aims to expand into new markets and enhance its offerings, particularly in affordable housing loans.
