Credit guarantee facilitation platform FinReach Solutions has raised Rs 21.9 crore in fresh funding, led by venture capital firm Colossa Ventures.
The round also saw participation from existing backers, including the Michael & Susan Dell Foundation, Omidyar Network Fund Inc, and Caspian SME Impact Fund IV.
With this round, the company has so far raised a total of Rs 54.4 crore.
Founded in 2020, the company works with guarantors and lending institutions to mitigate credit risk, enabling financing for micro and small businesses that often struggle to qualify for traditional loans due to the lack of collateral or limited credit history. The model is aimed at improving access to formal credit for underserved segments, including women-led enterprises and agriculture-focussed businesses.
The company said it will use the new capital to strengthen its risk assessment technology and scale operations.
According to the company, FinReach largely focuses on tier-III to tier-V markets and claims to have facilitated access to credit for more than 14,150 individuals so far, including over 2,050 women borrowers.
“Access to credit is a fundamental driver of economic empowerment,” said Suvalaxmi Chakraborty, founder and managing director of FinReach. “Micro and small enterprises are the heartbeat of India’s local economies. Our mission is to bridge the gap between lenders and unserved and underserved entrepreneurs.”
Chakraborty earlier held senior roles at ICICI Bank and Barclays, and served as the CEO of State Bank of Mauritius (India).
“By de-risking lenders and enabling viable entrepreneurs to secure timely, affordable capital, FinReach is catalysing meaningful economic inclusion. Our investment reflects our conviction in their approach of building the next-generation infrastructure of trust for small business lending in India,” said Ashu Suyash, founder and CEO, Colossa Ventures.
FinReach also counts British International Investment and the Michael & Susan Dell Foundation among its business partners.
The round also saw participation from existing backers, including the Michael & Susan Dell Foundation, Omidyar Network Fund Inc, and Caspian SME Impact Fund IV.
With this round, the company has so far raised a total of Rs 54.4 crore.
Founded in 2020, the company works with guarantors and lending institutions to mitigate credit risk, enabling financing for micro and small businesses that often struggle to qualify for traditional loans due to the lack of collateral or limited credit history. The model is aimed at improving access to formal credit for underserved segments, including women-led enterprises and agriculture-focussed businesses.
The company said it will use the new capital to strengthen its risk assessment technology and scale operations.
According to the company, FinReach largely focuses on tier-III to tier-V markets and claims to have facilitated access to credit for more than 14,150 individuals so far, including over 2,050 women borrowers.
“Access to credit is a fundamental driver of economic empowerment,” said Suvalaxmi Chakraborty, founder and managing director of FinReach. “Micro and small enterprises are the heartbeat of India’s local economies. Our mission is to bridge the gap between lenders and unserved and underserved entrepreneurs.”
Chakraborty earlier held senior roles at ICICI Bank and Barclays, and served as the CEO of State Bank of Mauritius (India).
“By de-risking lenders and enabling viable entrepreneurs to secure timely, affordable capital, FinReach is catalysing meaningful economic inclusion. Our investment reflects our conviction in their approach of building the next-generation infrastructure of trust for small business lending in India,” said Ashu Suyash, founder and CEO, Colossa Ventures.
FinReach also counts British International Investment and the Michael & Susan Dell Foundation among its business partners.