Team StartupCity

• FinReach secures Rs 21.9 crore in a new funding round led by Colossa Ventures.
• Funds will support expansion of credit guarantees, risk systems, and tech capabilities.
• The platform focuses on credit access for micro, small, women-led, and rural enterprises.

FinReach Solutions has raised Rs 21.9 crore (approximately $2.6 million) in a new funding round led by Colossa Ventures, with participation from existing investors Michael & Susan Dell Foundation, Omidyar Network Fund Inc, and Caspian SME Impact Fund IV. This follows its earlier raise of Rs 32.5 crore from the same investor group.

The company plans to use the new capital to scale its operations, expand its guarantee facilitation network, and strengthen its risk and technology infrastructure to manage larger volumes of credit assessments. FinReach aims to help underserved entrepreneurs access formal credit by improving lender confidence and reducing risk.

Founded in 2020 by Suvalaxmi Chakraborty, a former senior executive at ICICI Bank, Barclays Bank, and SBM India, FinReach focuses on small business owners who face challenges securing loans due to limited collateral or credit history. The company runs a private-sector Credit Guarantee Program that connects lenders with private guarantors, enabling loans for micro, small, women-led, agri, and climate-focused enterprises.

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FinReach uses an analytics-driven guarantee engine to evaluate borrower risk, enable guarantees, and support lending across tier-III to tier-V regions. So far, its programs have reached over 14,150 individuals, including more than 2,050 women borrowers.

The firm partners with development finance institutions such as British International Investment and several global foundations working to improve credit access. With this new funding, FinReach aims to broaden its reach and deepen financial inclusion across India’s MSME ecosystem.