INCOFIN CVSO INVESTS IN VERITAS (INDIA)
Incofin CVSA invests €3 million in Indian Veritas. This is the 2nd investment of the fund in India, after Fusion, in an institution that focuses on financing small businesses.
Veritas is a Non-Bank Financial Institution (“NBFC”). An NBFC is a category of financial institution regulated in India which operates as a bank, but with some important differences: for example, NBFCs do not have a bank license, they can accept deposits from customers and they are not part of the payment system.
Veritas offers short- and long-term financing to micro, small and medium-sized enterprises (‘MSMEs’). These loans can be used for business expansions and for working capital needs. In India, this type of ‘MSME’ enterprise is hardly ever served by the banks, which means that these entrepreneurs often have to call on local lenders with very unfavourable conditions and with the risk of being exploited. For institutions such as Veritas, this market therefore offers great opportunities, driven by a strong social mission. In order to realise this ambition, Veritas relies on external funding from international partners such as Incofin CVSO.
Veritas has built up a loan portfolio of $35 million since its inception at the end of 2015 and has been profitable since April 2017.