Chennai NBFC Veritas raises ₹1,200 crore

Chennai: MSME focused NBFC Veritas Finance Private Limited (Veritas) on Wednesday announced a major fund raise to the tune of Rs 1,200 crore. It is the single largest fund raise by the Chennai headquartered company since its inception in 2015. A statement here said, Veritas has secured an investment of Rs 1,200 crore led by Multiples Private Equity (Multiples) with an investment of Rs 1,050 crore along with its co-investors including IFC(W),The deal comprises a primary issuance of Rs 400 crore and provides a part exit to early investors, British International Investment (BII) and Lok Capital.Avendus Future Leaders Fund also participated in the transaction and invested Rs 150 crore. Avendus Capital was the exclusive financial advisor to Veritas on this transaction.Speaking to TOI D Arulmany, MD & CEO, Veritas said, it is the single largest raise by the company. "We will be using the fresh funds for MSME disbursements and affordable housing segments. We are in discussion in expanding our portfolio in a couple of other product verticals, as well," he said. Arulmany, who is the founder of NBFC, holds 11.5% of stake in the company. "We are expanding in two more states including Chhattisgarh and Bihar in this financial year," he added.Operating in eight states and with an AUM of more than Rs 3,500 crore as on March 31, 2023, the company primarily provides small business loans secured against self-occupied residential property of the borrowers with an average ticket size of Rs 5 Lakh.Nithya Easwaran, managing director, Multiples Alternate Asset Management said, “Veritas’ in-depth understanding of micro-SME businesses across different geographies combined with strong systems and frameworks has enabled it to address a wide set of customers and build a large, diversified franchise."