FinReach Solutions raised Rs 21.9 crore in a new funding round led by Colossa Ventures, along with existing investors Michael & Susan Dell Foundation, Omidyar Network Fund Inc., and Caspian SME Impact Fund IV.
FinReach Solutions raised Rs 21.9 crore funding
This new capital will help the private-sector credit guarantee facilitator expand operations and improve its risk and technology platform. The company aims to speed up and increase the number of guarantee assessments. It helps lenders provide credit to small businesses.
FinReach founded in December 2020 by Suvalaxmi Chakraborty, a former senior executive at ICICI Bank, Barclays Bank, and SBM India. The firm runs a privately led Credit Guarantee Program to help micro, small, women-led, agricultural, and climate-focused enterprises that struggle to get loans due to limited collateral or thin credit histories.
Links private guarantors with lenders
The platform links private guarantors with lenders, reducing credit risk. It allows formal institutions to lend to viable businesses in India’s underserved areas. Its proprietary analytics engine assesses borrower risk and facilitates guarantees on a larger scale, helping lenders increase their exposure to MSMEs with more confidence.
FinReach Solutions places a strong emphasis on tier III to tier V regions where access to formal finance is limited. The firm reports that its programs have supported 14,150 individuals so far, including over 2,050 women borrowers.
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