Veritas Finance raises Rs 1,200 crore

CHENNAI: MSME-focused NBFC Veritas Finance Private Limited has raised a fund of Rs 1,200 crore. It is the single largest fundraise by the Chennai-headquartered company, which has been operating in eight states since its inception in 2015.

The funding was led by Multiples Private Equity (Multiples) with an investment of Rs 1,050 crore along with its co-investors including IFC(W). It 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.

D Arulmany, MD & CEO of Veritas, said, "The fresh capital will provide a significant runway for growth, help deepen our existing offerings and expand into the affordable housing space. We strongly believe this partnership will further catalyse our mission to serve the underserved.”

D Arulmany holds 11.5% of stake in the company.

Nithya Easwaran, managing director, Multiples Alternate Asset Management, said, “Veritas’s in-depth and nuanced 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. ”

Ritesh Chandra, managing partner, Avendus Future Leaders Fund, said, "We are happy to join Veritas in their journey towards powering enterprise growth in India through financially inclusive lending solutions.”