Red Fort Capital, an investment grade non-banking financial company (NBFC) that provides secured loans to MSMEs, has raised Rs 11.5 crore debt fund to boost its small business loan portfolio. The funds were raised from asset financing company IKF Finance and financial service provider Usha Financial Services. The loan from IKF Finance is a term loan of Rs 7.5 crore, while the loan from Usha Financial Services is for Rs 4 crore.

The funds will be used to provide business loans to MSMEs with a turnaround time of under seven days. The company also plans to use the funds to expand its loan book. Red Fort Capital was founded in 2017 by Manoj Aggarwal and Ankit Aggarwal. The company provides secured loans from Rs 1 crore to Rs 10 crore to MSMEs at an interest rate of 18-24%.

The company’s loan portfolio has grown at a CAGR of 50% in the last three years. It currently has an AUM of Rs 100 crore. With the latest round of funding, Red Fort Capital aims to achieve an AUM of more than Rs 175 crore by the end of the current financial year. The company also plans to become a public company with $1 billion AUM over the next five years.

Commenting on the development, Manoj Aggarwal, CEO of Red Fort Capital, said,”We are excited to announce the raising of Rs 11.5 crore debt fund. This will help us to further expand our lending portfolio and provide much-needed capital to MSMEs. We are confident that this will help us to achieve our growth targets in the coming years.”

Ankit Aggarwal, COO of Red Fort Capital, said,”We are grateful to IKF Finance and Usha Financial Services for their support. This funding will help us to meet the growing demand for business loans from MSMEs. We are confident that this will help us to play a significant role in the growth of the Indian economy.”

The funding round for Red Fort Capital is a sign of the growing demand for business loans from MSMEs. With the right support, MSMEs can play a significant role in the growth of the Indian economy.