Spark Capital acted as the exclusive financial advisor to Veritas Finance for the transaction.
Spark Capital (“Spark”) is pleased to announce the successful closure of a ~USD 82 Mn equity fundraise in Veritas Finance Private Limited (“Veritas” or the “Company”) by Kedaara Capital, Norwest Venture Partners, Lok Capital, and the family of Mr. P. Surendra Pai through a combination of primary issuance and secondary sale of shares. The equity fundraise is the fifth round of external equity infusion into the Company.
Veritas’ ability to raise capital at a competitive valuation in the current market conditions is a testament to its strong execution capability and superior profitability driven by its focus on the underserved self-employed customer segment in rural and semi-urban geographies.
Commenting on the successful completion of the transaction, Mr. D Arulmany, Founder & CEO of Veritas Finance quoted, “We are delighted to have Kedaara Capital as our new partner and thank our existing investors for their continued confidence in the management team and the business. Spark Capital is a partner in the true sense and has done a commendable job in understanding our business and handling the equity raise effectively in a tough market scenario.”
Abhijit Chiripal, Executive Director & Head – Financial Services, Spark Capital said, “Veritas is a high-quality franchise with a high-calibre management team. The completion of this transaction in a tough environment is testament to Veritas' pedigree and unique value proposition and to Spark's differentiated approach of backing high conviction ideas and as an all-weather partner to its clients.”
With this deal, Spark has successfully completed its fifth transaction in the SME financing space with a cumulative deal value of USD 270 Mn+ and continues to maintain its leadership position in the BFSI space having consummated 39 transactions aggregating to ~USD 2.6 Bn in value across various sub-segments within BFSI.
We are proud to be a part of this large equity round in Veritas and wish them the very best in the years to come.