Veritas Finance Secures Rs 240 Crore Internal Funding, Eyes IPO in Next 12 Months

New Delhi, Sep 10 (KNN) Veritas Finance Pvt Ltd, a non-banking financial company (NBFC) focused on serving micro, small, and medium enterprises (MSMEs), has successfully raised Rs 240 crore in an internal funding round.

The capital injection comes from existing key investors including Lok Capital, Evolvence, and Avendus Future Leaders Fund.

D. Arulmany, Managing Director and CEO of Veritas Finance, stated, "The funds would help in strengthening the company's base and provide significant runway for growth."

In a notable development, Arulmany also revealed the company's ambitious plans, saying, "The Company may soon approach the market with an IPO in the next 12 months to augment its growth plans."

Founded in 2015, Veritas Finance has carved out a niche in the MSME financing sector, offering a range of financial products including short-term working capital, medium-term business loans, used commercial vehicle loans, and long-term housing construction financing.

The company has shown remarkable growth since its inception. As of June 2023, Veritas Finance boasts a substantial loan book of Rs 6,091 crore, with cumulative disbursements since inception surpassing Rs 10,400 crore. The NBFC has established a strong presence across India, operating over 400 branches in ten states.

Veritas Finance's financial performance remains robust, with the company reporting a total income of Rs 342 crore and a net profit of Rs 66 crore for the quarter ending June 2023.

This latest funding round and the potential IPO signal Veritas Finance's strong market position and its ambitions for further expansion in the competitive MSME financing landscape.

As the company gears up for its next phase of growth, industry observers will be keenly watching its moves in the coming months.

(KNN Bureau)