Thursday, May 13

Norwest Venture buys into Veritas

MUMBAI: Marking its third deal in the nonbanking finance company space, multi-stage investment firm Norwest Venture Partners has invested $30 million (Rs 200 crore) in Chennai-based Veritas Finance to acquire about 15% stake.

Veritas is already backed by CDC Group Plc, the UK government’s development finance institution, which had invested $10 million (Rs 65 crore) in 2017. Other investors include Lok Capital and Caspian Impact Investment Adviser.

PS Pai, former executive chairman of the Murugappa Group, also owns a minority stake in the company.

Founded in 2015 by D Arulmany, Veritas Finance lends to micro, small and medium enterprises in India. It has a loan book of Rs 496 crore, through 125 branches.

It provides shortterm loans for working capital, medium-term loans for business expansion and long-term loans for asset creation.

The company has over 17,000 customers on board and aims to grow its loan book to Rs 1,000 crore by FY19. Veritas operates in Tamil Nadu, Puducherry, Karnataka, West Bengal and Odisha. Norwest will invest primary capital in it to meet its expansions.

A Norwest spokesperson declined comment.

An email to D Arulmany, chief executive, Veritas, did not elicit any response till press time Friday.

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