CDC leads $19m round for India's Veritas

CDC committed $10 million of the Series B round, with Lok Capital making up the rest, according to a statement. Veritas, which currently operates in two states in south India and two in the east, will use the new capital to expand into two more southern states. The company also plans to deepen its presence in existing locations and develop new technology to lower costs for customers.

Veritas lends to micro, small and medium-sized enterprises (MSMEs) in rural and semi-urban areas, providing both long-term financing for business expansion and short-term working capital loans. Since its founding in 2015, the company has provided loans worth INR2.1 billion ($32 million) to over 12,000 customers through 60 branches and 97 micro centers.

Lok is an existing investor in Veritas, having led the NBFC’s INR300 million Series A round last year. Caspian Capital also participated in that round, according to AVCJ Research.

“Financial services for the MSME space in India is a huge area, but is also hugely under-served,” said Nikhil Balaraman, a director for South Asia for CDC. “The team from Veritas stands out for its dedication and experience and we’re committed to help them reach ever more challenging geographies, giving their customers the financial tools and advice to prosper.”

CDC has made a number of investments in India’s financial services sector, with a particular focus on institutions that can boost the MSME segment. Its portfolio includes both other NBFCs, such as India Infoline Finance, and members of the formal banking sector such as listed private lender RBL Bank.

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• Topics
• South Asia
• Financials
• Early-stage
• India
• CDC Group
• NBFCs
• Financial Services