TruCap Finance would raise up to Rs 105 crore from Zeal Global Opportunities Fund
- ByStartupStory | December 21, 2022
Zeal Global Opportunities Fund would invest up to Rs 105 crore ($13.1 million) in TruCap Finance.
According to the press statement, the fundraise would be split into Rs 80 crore of stock and convertible warrants and up to Rs 25 crore through NCDs (non-convertible debentures) in the company.
TRU, which was founded in 1994, offers MSME business loans and MSME gold loans through a network of over 67 branches in six states: Maharashtra, Delhi-NCR, Madhya Pradesh, Goa, Gujarat, and Rajasthan.TruCap’s Chairperson of the Board, Rakesh Sethi, stated that the investment round will increase the company’s stock base to roughly Rs 325 crore.
“This will invigorate TRU’s efforts to build businesses at a greater scale with speed, while we continue what we do best, which is to empower small business owners by enabling credit inclusion through lending-as-a-service (L-a-a-S) with a robust risk management framework,” he added.
“TRU has evolved its ability to address multiple pain points faced by underserved borrowers to access growth capital. It has managed to bridge the credit gap left unaddressed by traditional lenders in the MSME clusters of India,” said Ritesh Abbi, CEO, Zeal Global Opportunities Fund. “Having proprietary data acquired via disbursement of more than 100,000 loans, TRU has significantly reduced turnaround time, scaled sourcing capabilities, refined the qualification processes, and collections strategies for small businesses lending,” he added
TRU also intends to incorporate Exclusive Leasing & Loans’s retail MSME lending vertical, an NBFC focused on delivering secured and cheap finance to India’s MSME sector.
“We look forward to leveraging on each other’s strengths to build customer-centric solutions and accomplish our resolve to promote financial inclusion,” VK Bhandari, Chairman of EZ Capital, remarked. “This is an opportunity to offer wings to aspirations of countless micro, small and medium entrepreneurs in non-metros to herald a new chapter in the country’s growth story at a global stage, riding on the tailwinds of improving economic activity.” “We are very excited to partner with Zeal Global and EZ Capital in our mission to make a deep societal impact by providing access to timely and affordable finance to MSMEs in semi-urban and rural areas,” said Rohan Juneja, MD and CEO at TruCap Finance Limited.
Tru Cap Finance intends to expand its branch network to more than 75 by March 2023. It has granted a total of Rs 1,132 crore to underserved businesses in India through more than 121,000 loans.
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