CredRight Secures $10 Million in Series B Funding for MSME Growth

CredRight, an NBFC based in Hyderabad dedicated to supporting nano and micro enterprises, has successfully raised $10 million in Series B funding. This round was led by Abler Nordic, representing their initial investment from its newly established Fund V. Existing investors, including the Michael & Susan Dell Foundation and Unleash Capital, also contributed, with Abler Nordic now holding the position of the company’s largest equity investor.

In August 2023, CredRight had previously secured approximately $9.7 million, primarily from the Michael & Susan Dell Foundation among others. The latest funding will enable CredRight to enhance its loan portfolio, fortify its technology platform, and broaden its reach across tier-II to tier-IV markets.

About CredRight and Its Innovative Approach

Founded in 2016 by Neeraj Bansal and Vineet Jawa, CredRight operates using a phygital model that merges digital lending with a network of 125 cost-effective branches situated in four states. Currently, the company serves over 20,000 micro-enterprises, such as shopkeepers and traders, who have traditionally been excluded from formal financial services.

Addressing India’s MSME Credit Gap

CredRight’s operational model specifically aims to tackle India’s substantial MSME credit gap, estimated at $530 billion, of which $169 billion is found in the micro segment. The company competes in the inclusive finance and MSME lending sector alongside rivals like Kinara Capital, Varthana, Aye Finance, U GRO Capital, and Indifi.