Credit-access platform FinReach Solutions has secured Rs 21.9 crore ($2.6 million) in a new funding round led by Colossa Ventures, with participation from existing investors including the Michael & Susan Dell Foundation, Omidyar Network Fund Inc, and Caspian SME Impact Fund IV. The company has now raised Rs 54.4 crore to date, following an earlier Rs 32.5 crore infusion from its investor group.
Strengthening Technology, Risk Systems and Guarantee Capacity
FinReach will use the fresh capital to scale operations and expand its private-sector credit guarantee facilitation, a model designed to help lenders extend credit to micro and small enterprises that typically face barriers due to limited collateral and thin credit histories. The company is also investing in risk infrastructure and technology to handle larger volumes of borrower assessments.
Targeting Entrepreneurs Left Out of Formal Credit
Founded in December 2020 by Suvalaxmi Chakraborty, a former senior executive at ICICI Bank, Barclays, and SBM India, FinReach focuses on small entrepreneurs who struggle to access traditional banking channels. Its credit guarantee engine enables lenders to serve micro, small, women-led, agriculture-focused and climate-oriented enterprises, especially across tier-III to tier-V regions.
FinReach acts as a bridge connecting private guarantors with lenders, reducing loan risk and unlocking capital for underserved MSMEs. The platform’s analytics-driven approach evaluates borrower behaviour, enhances underwriting quality and expands credit availability in markets often overlooked by formal finance.
Impact Metrics and Partnerships
FinReach says its programs have reached 14,150 individuals, including over 2,050 women borrowers, supported by partnerships with global development finance institutions such as British International Investment and foundations working on credit-access expansion.
Final Take
As MSMEs face persistent credit gaps, FinReach’s guarantee-led approach offers a scalable pathway for expanding formal lending in underpenetrated regions. The new funding strengthens its ability to de-risk loans and broaden financial inclusion across India’s small enterprise economy.
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