Hyderabad-based Non-Banking Financial Company (NBFC) CredRight has raised $10 million in Series B funding, reaffirming its mission to bridge one of the most pressing gaps in India’s economy—the lack of credit for micro-entrepreneurs. The funding round was led by Abler Nordic, which marked its first investment from the new Fund V. Existing backers—the Michael & Susan Dell Foundation and Unleash Capital—also doubled down on their support.
With this fresh infusion, CredRight plans to expand its loan book, upgrade its technology platform, and reach more entrepreneurs across Tier-2 to Tier-4 towns—regions where financial access remains limited. Abler Nordic, now CredRight’s largest equity investor, has committed to working closely with the management team to help scale operations, strengthen governance, and deepen social impact.
Credits: StartupTalky
Founders with a Vision
CredRight was founded in 2016 by Neeraj Bansal, an alumnus of BIT Durg and IIM Lucknow, and Vineet Jawa, a serial entrepreneur and ISB graduate. Their vision was simple yet ambitious: to give India’s smallest business owners a fair chance at growth through timely, accessible loans.
The company operates on a “phygital” model—a hybrid of digital lending combined with a network of 125 low-cost branches spread across four states. This approach ensures not just efficiency through technology but also personal trust-building in communities where face-to-face relationships still matter.
Today, CredRight supports over 20,000 micro-enterprises, many of which are run by small shopkeepers, traders, and entrepreneurs who have historically been excluded from formal credit systems.
The Massive Credit Gap
India’s Micro, Small and Medium Enterprises (MSMEs) are the backbone of the economy, but they face an enormous financing hurdle. According to estimates, the sector has a credit gap of $530 billion, with micro enterprises alone accounting for $169 billion of this shortfall.
Despite being nearly 64 million strong, only about 14% of micro-entrepreneurs in India currently have access to individual business loans. The issue is particularly stark in semi-urban and rural areas, where traditional banks and financial institutions often fail to reach.
“Micro enterprises will play a significant role in India’s journey to a $10 trillion GDP,” said co-founder Neeraj Bansal. “Access to institutional capital accelerates their growth and resilience. This fundraise, despite industry headwinds, is a testament to CredRight’s business model.”
Investor Confidence in a Local Solution
For Abler Nordic, this investment is as much about financial growth as it is about creating long-term impact. “This first investment from Fund V reflects both our confidence in CredRight’s model and our strong commitment to India as a priority market,” said Arthur Sletteberg, Managing Director at Abler Nordic. “By supporting CredRight with patient capital and active ownership, we aim to back a locally-rooted solution that effectively addresses this gap.”
The sentiment was echoed by Rakesh Goyal, Head – Financial Services, at the Michael & Susan Dell Foundation India. “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.”
Impact on the Ground
CredRight’s impact is already visible. According to the 2023 60 Decibels Microfinance Index, more than 70% of its customers reported increased income, higher savings, and better financial management after receiving loans. For many, this access to credit has been life-changing—helping them stock more inventory, expand their shops, or simply gain the confidence to grow.
The company has set its sights even higher, with an ambition to empower 10 million nano enterprises across India’s underserved markets in the coming years.
Credits: Marca Money
The Road Ahead
The Series B round comes at a crucial time when India is pushing toward becoming a $10 trillion economy. For that vision to materialize, the micro sector—often overlooked—must thrive. CredRight is positioning itself as a vital player in this story, offering not just capital but also dignity, trust, and growth opportunities to entrepreneurs who need them the most.
As CredRight expands deeper into semi-urban and rural India, its blend of technology and grassroots presence could redefine how small businesses access credit. And with strong backing from global impact investors, its journey has only just begun.
