Investment Firm CredRight Gathers $10m in Series B Funding for Expansion of Small and Medium Enterprise Credit Services

CredRight Secures $10 Million in Series B Funding to Empower Micro-Enterprises

CredRight, a fintech startup based in India, has raised $10 million in Series B funding, led by Abler Nordic. The funding round also saw participation from existing investors Michael & Susan Dell Foundation and Unleash Capital. With this, Abler Nordic becomes CredRight's largest equity investor.

Founded in 2015, CredRight has been serving more than 20,000 micro-enterprises, primarily small shopkeepers and traders who remain outside the ambit of traditional credit systems. The company's unique "phygital" model integrates a digital-first lending platform with a network of 125 low-cost branches across four Indian states, making it easier for these micro-enterprises to access loans.

The funding comes at a time when India's MSME sector faces a credit shortfall estimated at $530 billion, with $169 billion attributed to the micro-enterprise segment. Only 14% of India's 64 million micro-entrepreneurs currently have access to individual business loans. CredRight's mission to empower nano enterprises across India's underserved markets is more relevant than ever.

Neeraj Bansal, Co-Founder of CredRight, stated that micro enterprises will play a significant role in India's journey to a $10 trillion GDP. He added that the funding is a testament to CredRight's business model, despite industry headwinds.

Arthur Sletteberg, Managing Director at Abler Nordic, expressed confidence in CredRight's model and committed to India as a priority market. He stated that Abler Nordic aims to support CredRight with patient capital and active ownership.

According to the 2023 60 Decibels Microfinance Index, more than 70% of CredRight's customers reported increased income, higher savings, and stronger financial management after accessing its loans. CredRight has set an ambitious goal of empowering over 10 million nano enterprises across India's underserved markets.

The capital infusion will strengthen CredRight's loan book, upgrade its technology platform, and expand its footprint across Tier-2 to Tier-4 markets. With Abler Nordic's support, CredRight is well-positioned to make a significant impact in India's micro-enterprise sector.

Investment Firm CredRight Gathers $10m in Series B Funding for Expansion of Small and Medium Enterprise Credit Services