Veritas Finance secures Rs 1200 crore investment to strengthen MSME reach

The deal comprises a primary issuance of Rs 400 crore and provides a part exit to early investors, British International Investment (BII) and Lok Capital.

Veritas Finance Pvt Ltd on July 5 announced the investment of a total Rs 1,200 crore to expand access to capital for India’s micro, small and medium enterprises.

The investments came from Multiples Private Equity (Rs 1,050 crore) and Avendus Future Leaders Fund (Rs 150 crore). The deal comprises a primary issuance of Rs 400 crore and provides a part exit to early investors, British International Investment (BII) and Lok Capital.

Veritas specializes in underserved MSME financing in rural and semi-urban areas. Originally based in Tamil Nadu, it has expanded to eight states and one union territory, operating over 285 branches.

With more than 115,000 customers and an AUM of more than Rs 3,500 crore, the finance company primarily provides secured small business loans with an average ticket size of Rs 5 lakh.

D. Arulmany, MD & CEO of Veritas said: “Veritas is on a secular compounding journey, and we are excited to partner with an investor like Multiples who has admirable understanding of the financial services space. In addition to Multiples, the current capital raise will also see Avendus FLF, known for backing future leaders, partnering with Veritas. The fresh capital raised will provide significant runway for growth, help deepen our existing offerings and expand into the affordable housing space. We strongly believe these partnerships will further catalyse our mission to serve the underserved.”

Over the past six years, Veritas has experienced substantial growth, acquiring extensive operational expertise and market understanding. With the infusion of fresh capital, the company aims to expand into new markets and enhance its offerings, particularly in affordable housing loans.

Nithya Easwaran, Managing Director, Multiples Alternate Asset Management said, "Arulmany, along with the top-notch management team has scaled the business while maintaining pristine quality. We are delighted to partner with him to build a market leading, distinctive financial institution."

The founder of Veritas, D. Arulmany, brings over 25 years of experience in business development, having worked with renowned franchises such as Cholamandalam Finance and Aptus Housing.

"Veritas, with its focus on easy credit for the massively underserved MSME segment coupled with its vast network of 285+ branches across India is set to occupy a leadership position in the MSME-NBFC sector," said Ritesh Chandra, Managing Partner, Avendus Future Leaders Fund.