Hyderabad-based FinTech startup CredRight has raised Rs. 19.85 crore funding from 9 Unicorns, Spearhead Capital and Venture Catalyst, along with existing investors YourNest, Accion Venture Labs, and prominent angels.
CredRight is a data-driven lending platform that facilitates credit to small businesses and MSMEs via NBFCs and Banks. It has built a tech-based distribution model to reach out to India’s 10 mn Registered chit subscribers that are largely located in tier-II and tier-III cities.
Neeraj Bansal, co-founder & 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.”
Dr Apoorva Ranjan Sharma, Co-founder & Managing Director, 9Unicorns, commented, “India is run by its 63 million of small business, but in the absence of accessible capital, they struggle to scale to the next level. According to recent reports, less than 15% 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 3-5 business days. Their product has the potential to bring large-scale revolution in the SMB lending, and can scale rapidly. We are looking forward to supporting their journey in the coming years.”
Sunil K. Goyal, Managing Director & Fund Manager at existing investor, YourNest Venture Capital said: “We have been a part of CredRight’s growth story since 2018. The company has significantly scaled up and built a strong team since we first invested. Its underwriting model, using proxy data from chit funds, allows it to have one of the lowest NPAs in the industry during the pandemic. With the recent round of funding, we are confident that the company would be able to grow its loan book 4-5 times.”