Veritas raises ₹500 cr from Norwest, Kedaara Capital
- ByStartupStory | October 9, 2021
Veritas Finance Pvt. Ltd, a non-bank finance company (NBFC) said Thursday it had raised Rs 440 crore in primary investments through a Series F cycle. by existing investors Norwest Venture Partners, Kedaara Capital, and Caspian and with the support of new investors Evolvence India Fund III Ltd and Growth Catalyst Partners LLC.
The company, focused on lending to micro, small and medium-sized enterprises (MSMEs) with a presence in eight states, said that the round also includes a sale of secondary shares of Rs60 crore by some of the company’s early investors and some former employees.
Promoted in 2015 by D. Arulmany, Veritas Finance has since created a loan portfolio of more than Rs 1750 crore, with a customer base of more than 60,000 present in eight states and a Union territory with more than 218 branches supported by 2,402 employees. The lender provides business loans for self-employed persons and housing loans for these customers. It offers loans for Rs 310 lakhs notes for a maturity of 57 years.
“The company has handled the COVID crisis well, which hit the SMB segment well and is now well-positioned to significantly increase volumes. The MSME segment’s informal micro-enterprises in rural areas, the core segment of the organization, have shown tremendous resilience during COVID and have shown an excellent repayment culture despite huge challenges over the past fifteen months,” said D. Arulmany, MD & CEO, Veritas Finance.
Despite the impact of the covid19 pandemic and lockdowns, the lender managed to report 20% growth in its loan portfolio in FY21, Arulmany said and expects a 4,050% growth in FY 22 to keep its loan portfolio at about Rs2,4002. bring. 500 crores.
The lender’s gross non performing assets (NPA) were 2.5% as of March 31, 2021, and Arulmany expects to close fiscal year 22 with NPA levels below 2%, as the lender saw its collection efficiency improved to level the supply and its clientele demonstrates to be strong resistance to interference from Covid19.
Arulmany said the lender sees strong demand for loans in states such as Andhra Pradesh, Tami Nadu, and Telangana. The lender, currently mainly present in the southern and eastern states, will seek to expand its geographic presence in western India over the next 1,215 months, he said.
“The company continues to exhibit strong execution and excellent team culture with a vision to become one of the leading retail NBFCs in India. The company has invested in the right elements to enable upgradability with a high level of corporate governance, technological prowess, and institutionalization, ”said Shiv Chaudhary, Managing Director, Norwest Venture Partners, India.
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