FinReach Solutions, a private credit-guarantee facilitation company, has raised INR 21.9 crore (about $2.6 million) in a new funding round led by Colossa Ventures.
Existing investors — the Michael & Susan Dell Foundation, Omidyar Network Fund, and Caspian SME Impact Fund IV — also took part in the round.
The company plans to use the new capital to expand its operations, enhance its risk and technology systems, and improve the speed and scale at which it can evaluate and provide credit guarantees.
Suvalaxmi Chakraborty, Founder and Managing Director of FinReach, said, “Access to credit is a fundamental driver of economic empowerment. Micro and small enterprises are the heartbeat of India’s local economies. Our mission is to bridge the gap between lenders and unserved & underserved entrepreneurs. This fundraise will help us expand our guarantee facilitation business and enhance our risk & tech stack to make lending more inclusive and efficient.”
Ashu Suyash, Founder & CEO, Colossa Ventures, said, “At Colossa Ventures, we back businesses addressing India’s most critical gaps with scalable, purpose-led innovation. FinReach embodies this mission through its credit analytics and technology-driven credit guarantee platform that expands formal credit access for underserved MSMEs. 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.”
Founded in 2020 by Suvalaxmi Chakraborty, FinReach operates a private Credit Guarantee Program that helps make loans more accessible for micro and small businesses, women-led enterprises, and companies focused on agriculture and climate-related sectors.
FinReach connects approved guarantors with lenders, helping reduce the credit risk for banks. This makes it easier for small and promising businesses to get loans at affordable rates.
The company uses its own technology and analytics platform to check risk and support MSME lending on a large scale, while also helping lenders use their capital more efficiently.
FinReach mainly works in Tier-3 to Tier-5 areas, supporting micro-entrepreneurs, women-led businesses, and small farmers who often struggle to get loans because they don’t have enough collateral.
So far, FinReach’s programs have supported more than 14,150 people, including over 2,050 women borrowers.
By lowering risk for lenders and increasing trust in small borrowers, FinReach is helping expand financial access, support entrepreneurship, create jobs and promote sustainable economic growth across India.
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