Hyderabad-based NBFC CredRight has raised USD 10 million (~INR 87.72 crore) in a Series B funding round led by Norway-headquartered Abler Nordic, marking the latter’s first investment from its recently launched Fund V. The round also saw participation from existing backers Michael & Susan Dell Foundation and Unleash Capital, with Abler Nordic emerging as CredRight’s largest equity investor.
Expanding Reach to Small and Nano Enterprises
Founded in 2016 by Neeraj Bansal (BIT Durg, IIM Lucknow) and Vineet Jawa (ISB alumnus and serial entrepreneur), CredRight specialises in lending to India’s underserved micro and small enterprises (MSMEs), particularly shopkeepers, traders, and nano entrepreneurs lacking access to formal credit.
Operating on a “phygital” model, the company blends digital lending with a physical network of 125 low-cost branches spread across four states. To date, it serves more than 20,000 micro-enterprises. The newly raised capital will be deployed to expand its loan book, upgrade its technology platform, and deepen its reach across Tier II to Tier IV cities and towns.
Investor Confidence Amid Industry Headwinds
CredRight Series B funding comes at a time when the Reserve Bank of India (RBI) has tightened oversight on unsecured loans, raising concerns for banks and NBFCs active in this segment. Despite these headwinds, CredRight has managed to attract capital — a sign of investor confidence in its resilience and scalable model.
Arthur Sletteberg, Managing Director at Abler Nordic, emphasised: “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 the MSME credit gap.”
Rakesh Goyal, Head of Financial Services at Michael & Susan Dell Foundation India, added that nano and micro entrepreneurs form the backbone of India’s economy, and CredRight’s model is uniquely positioned to provide fair and flexible capital while building long-term financial resilience.
Addressing India’s USD 530B MSME Credit Gap
India’s MSME sector faces an estimated USD 530 billion credit gap, with about USD 169 billion concentrated in the micro segment. Only 14–20% of micro and small enterprises have access to formal business loans, underscoring the massive untapped demand.
CredRight’s lending model offers average ticket sizes of INR 4 lakh at interest rates between 24–27%, repayable over 36 months. According to the 2023, 60 Decibels Microfinance Index, over 70% of CredRight’s customers reported increased income, higher savings, and better financial management after receiving loans.
Neeraj Bansal, CredRight’s co-founder, underscored the macro opportunity: “Micro enterprises will play a significant role in India’s journey to a USD 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.”
Competitive Landscape and Future Outlook
CredRight operates in a growing and competitive inclusive finance ecosystem, with peers such as Aye Finance, Kinara Capital, UGRO Capital, Indifi, and Lendingkart also targeting the MSME credit gap. Investor activity in the NBFC and digital lending space remains strong, with players like Flexiloans, Bizloan, Techfino, and InPrime Finserv recently securing fresh rounds, while larger fintechs such as Jio Financial Services and MobiKwik are building out NBFC arms.
With Abler Nordic now onboard as its largest equity investor, CredRight is positioned not just to expand geographically but also to strengthen governance, operational scalability, and impact measurement. The company has stated ambitions to eventually empower more than 10 million nano enterprises across India’s underserved markets.
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