CredRight Raises $10 Mn To Expand Lending To Small Businesses 

NBFC Credright has raised $10 Mn (around INR 87.5 Cr) in its Series B round led by Norway-based investment firm Abler Nordic. The round also saw participation from existing investors Michael & Susan Dell Foundation and Unleash Capital.

The new-age digital lending company will use the fresh capital to expand its loan book, upgrade its technology stack, and widen its reach to entrepreneurs in tier II to tier IV cities.

In a statement, CredRight said this was Abler Nordic’s first investment from its new Fund V, and it has now become the largest equity investor in the NBFC. Going ahead, Abler Nordic will work closely with CredRight to help scale operations and strengthen governance.

Founded in 2016 by Neeraj Bansal and Vineet Jawa, CredRight offers digital loans to small businesses. It also runs 125 low-cost branches across four states to reach these businesses.

The NBFC claims to serve more than 20,000 micro-enterprises, primarily small shopkeepers and traders who often struggle to get formal credit.

Prior to the latest funding round, CredRight had raised over $13 Mn to date from investors like YourNest Venture Capital, 100Unicorns, and Accion Venture Lab.

Commenting on the funding, CredRight cofounder Bansal said, “Micro enterprises will play a significant role in India’s journey to a $10 Tn GDP. Access to institutional capital accelerates their growth and resilience.”

A recent NITI Aayog report highlighted that MSMEs’ access to formal credit improved between 2020 and 2024, with the share of micro and small enterprises accessing credit from scheduled banks rising from 14% to 20%, while medium enterprises grew from 4% to 9%. Even so, the report underlined that a substantial credit gap persists for MSMEs.

Several digital-first NBFCs like Lendingkart and Aye Finance are working to bridge this gap. These NBFCs are also seeing a lot of investor interest because of the large opportunity the sector provides.

So far this year, NBFCs like Flexiloans, Bizloan, Techfino, InPrime Finserv, among others, have secured fresh funding, while the likes of Vayana and Kuhoo Finance have received NBFC licences from the RBI.

Many fintech players are also setting up and infusing capital in their NBFC arms. Jio Financial Services recently injected INR 1,000.24 Cr into its NBFC subsidiary Jio Finance Limited to expand offerings, while listed fintech major MobiKwik announced the incorporation of its wholly-owned NBFC, Mobikwik Financial Services Private Limited (MFSPL).