CredRight, a Non-Banking Financial Company (NBFC) focused on bridging the credit gap for India’s micro and small entrepreneurs, has raised $10 million in a Series B round led by Abler Nordic, marking the firm’s first investment from its new Fund V.
The round also saw participation from existing backers Michael & Susan Dell Foundation and Unleash Capital.
According to the company, the fresh capital will be used to expand its loan book, enhance its technology platform, and increase outreach to entrepreneurs across Tier-2 to Tier-4 towns. With this round, Abler Nordic has become the company’s largest equity investor and will partner with CredRight’s management to scale operations, strengthen governance, and maximize impact.
Founded in 2016 in Hyderabad by Neeraj Bansal, an alumnus of BIT Durg and IIM Lucknow, and Vineet Jawa, an ISB graduate and serial entrepreneur, CredRight runs a “phygital” model that combines digital lending with a network of 125 low-cost branches across four Indian states. The firm currently serves more than 20,000 micro-enterprises, primarily shopkeepers and traders excluded from formal credit. Its investor base also includes YourNest Venture Capital, 100Unicorns, and Accion Venture Lab.
“Micro enterprises will play a significant role in India’s journey to a $10 trillion GDP. Access to institutional capital accelerates their growth and resilience. This fundraise, despite industry headwinds, is a testament to CredRight’s business model,” said Neeraj Bansal, co-founder of CredRight.
India’s MSME sector faces a vast estimated credit gap of $530 billion, with $169 billion specifically in the micro segment. Currently, only about 14% of India’s 64 million micro-entrepreneurs have access to individual business loans, with the shortage most severe in semi-urban and rural regions.
“This first investment from Fund V reflects both our confidence in CredRight’s model and our strong commitment to India as a priority market. By supporting CredRight with patient capital and active ownership, we aim to back a locally-rooted solution that effectively addresses this gap,” said Arthur Sletteberg, Managing Director at Abler Nordic.
Rakesh Goyal, Head – Financial Services, Michael & Susan Dell Foundation India, added, “Nano or micro entrepreneurs form the backbone of India’s economy, yet most lack access to fair and flexible capital. CredRight is changing that by blending technology with community reach, helping thousands of small businesses boost income, create jobs and achieve financial security.”
CredRight also highlighted findings from the 2023 60 Decibels Microfinance Index, which revealed that more than 70% of its customers reported higher incomes, improved savings, and better financial management after receiving loans. Looking ahead, the company aims to empower over 10 million nano enterprises in India’s underserved regions.
