Home / Business and Economy / FinReach Secures Rs 21.9 Cr to Empower Underserved MSMEs
FinReach Secures Rs 21.9 Cr to Empower Underserved MSMEs
24 Nov
Summary
- FinReach Solutions raised Rs 21.9 crore in new funding led by Colossa Ventures.
- The platform facilitates credit for micro and small businesses lacking collateral.
- Funding will enhance risk assessment technology and scale operations.
FinTech firm FinReach Solutions has successfully raised Rs 21.9 crore in fresh funding, with Colossa Ventures leading the investment round. Existing backers, including the Michael & Susan Dell Foundation and Omidyar Network Fund Inc, also participated, bringing the company's total raised capital to Rs 54.4 crore since its inception in 2020. This significant funding will bolster FinReach's risk assessment technology and facilitate operational scaling.
The company's core mission is to bridge the credit gap for micro and small businesses that often face barriers to traditional financing due to a lack of collateral or limited credit history. FinReach achieves this by working with guarantors and lending institutions to mitigate credit risk, thereby enabling access to formal credit for underserved segments, including women-led enterprises and agri-focused businesses.
FinReach primarily targets tier-III to tier-V markets, having already facilitated credit access for over 14,150 individuals, with more than 2,050 being women borrowers. The investment underscores a shared conviction in FinReach's model to build the next-generation infrastructure for small business lending in India, fostering economic inclusion and empowerment.
