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Veritas Finance Pvt Ltd, a Chennai-based financial company that lends to micro and small enterprises, has raised ₹30 crore in a Series A round led by Lok Capital-advised Sarva Capital and Caspian Impact Investment Advisor.
The company will use the money to diversify its products and services. Veritas has 12 branches in Tamil Nadu with 200 customers and a loan book of ₹4 crore. It plans to set up 35 branches in the next few months. By 2017, it aims to grow its loan book to ₹200 crore, increase its customer base to 5,000 and start operations in Karnataka, Odisha and Andhra Pradesh. Founded in November 2015 by D Arulmany, a management graduate from IRMA, Anand, with nearly two decades in the non-banking finance sector, Veritas meets the short-, medium- and long-term requirements of financially excluded micro and small enterprises.
The typical customers of Veritas – small and micro entrepreneurs who run bakeries, restaurants and provision stores – have an average monthly income ranging from ₹25,000 to ₹60,000 with no prior exposure to formal business finance. The average size of the loans extended is ₹4 lakh. This is the first round of institutional funding for Veritas. It charges 18-24 per cent interest.
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