CredRight, a non-banking financial company (NBFC) that supports nano and micro businesses, has raised $10 million in Series B funding led by Abler Nordic.
The funding round also included investments from existing backers, Michael & Susan Dell Foundation and Unleash Capital.
The new funding will enable CredRight to increase its loan volume, enhance its technology platform, and expand into smaller cities and towns (tier-II to tier-IV markets).
Earlier, in August 2023, CredRight had raised around $9.7 million from the Michael & Susan Dell Foundation and other investors.
“Micro enterprises will play a significant role in India’s journey to a $10 trillion GDP. Access to institutional capital accelerates their growth and resilience. This fundraise, despite industry headwinds, is a testament to CredRight’s business model,” said Neeraj Bansal, co-founder of CredRight.
“This first investment from Fund V reflects both our confidence in CredRight’s model and our strong commitment to India as a priority market. By supporting CredRight with patient capital and active ownership, we aim to back a locally-rooted solution that effectively addresses this gap,” said Arthur Sletteberg, Managing Director at Abler Nordic.
Rakesh Goyal, Head – Financial Services, Michael & Susan Dell Foundation India, said, “Nano or micro entrepreneurs form the backbone of India’s economy, yet most lack access to fair and flexible capital. CredRight is changing that by blending technology with community reach, helping thousands of small businesses boost income, create jobs and achieve financial security.”
CredRight, based in Hyderabad, was founded in 2016 by Neeraj Bansal and Vineet Jawa. The company uses a phygital model, combining digital lending with 125 low-cost branches across four states.
It currently helps over 20,000 micro-businesses, such as shopkeepers and traders, who often cannot access formal loans. CredRight focuses on India’s $530 billion MSME credit gap, including $169 billion in the micro-business segment.
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