Chennai-based Veritas raises Rs 200 crores from Norwest Venture Partners in Series D round
The company currently has a loan book of Rs 530 crore. Arulmany said the he expected the loan book to increase to over Rs 800 crores in FY18-19 and then up to Rs 1500 crores in the following fiscal, FY19-20.
The company, founded in 2015, which currently has presence in seven states will deploy the fresh round of funds towards increasing its credit penetration in existing markets, according to D Arulmany, Managing Director and CEO, Veritas. “Apart from current markets, with the current round of funding we are also looking at expanding into new geographies and strengthening our technology such that we have higher productivity and can bring down the cost of servicing micro-businesses.”
The company currently has a loan book of Rs 530 crore. Arulmany said the he expected the loan book to increase to over Rs 800 crores in FY18-19 and then up to Rs 1500 crores in the following fiscal, FY19-20. The company has over 21,000 customers and 132 branches currently.
Avendus Capital was the financial advisor to the company in the current round. Veritas had raised Rs 30 crore in a Series A round in March 2016 from Sarva Capital and Caspian Impact Investment Advisors, following this it had raised Rs 120 crore in a Series B round in December 2017 from CDC Capital, plc, of the UK, and existing investors Lok Capital and Pai; and, Rs 60 crore in a Series C round from CDC, Lok and Pai in April.
Arulmany said that he expected the current liquidity crunch in the non banking finance industry to ease in a little over a quarter. He added that for Veritas, which also operates in the same sector and disburses close to Rs 40 crores a month, demand had been strong. Veritas has operations in Tamil Nadu, West Bengal, Odisha, Andhra Pradesh, Telangana, Karnataka and Madhya Pradesh.