Multiples Private Equity, led by Renuka Ramnath, has spearheaded a $145 million funding round in Veritas Finance Pvt. Ltd, which involves both primary capital infusion and a secondary sale. The investment firm, along with co-investors including the International Finance Corporation (IFC), will contribute INR 1,200 crore to Veritas, providing the company with the resources to expand into new markets and strengthen its new product lines, particularly affordable housing loans.

The deal encompasses a primary issuance of INR 400 crore, allowing Veritas to raise fresh capital, and also provides a partial exit for early investors British International Investment (BII) and Lok Capital. Multiples PE, IFC, and other co-investors will inject INR 1,050 crore into the company, while Avendus Future Leaders Fund will participate in the transaction with an investment of INR 150 crore.

Veritas Finance, a non-banking finance company, aims to utilize the raised funds to enhance its offerings and expand access to capital for micro, small, and medium enterprises (MSMEs) in India. The investment will provide Veritas with significant growth opportunities and support its mission to serve underserved segments of the market. D Arulmany, Managing Director and CEO of Veritas, expressed his optimism, stating, “The fresh capital raised will provide significant runway for growth, help deepen our existing offerings, and expand into the affordable housing space. We believe these partnerships will further catalyze our mission to serve the underserved.”

Avendus Capital, an investment banking firm, acted as the exclusive financial adviser to Veritas in this transaction. In 2021, Veritas had raised INR 440 crore through a Series F funding round led by existing investors Norwest Venture Partners, Kedaara Capital, and Caspian, with support from new investors Evolvence India Fund III Ltd and Growth Catalyst Partners. The capital injected by Multiples PE comes from its third fund, which successfully raised $680 million in 2021. Additionally, Multiples PE recently closed the first round of its fourth fund, securing $640 million from anchor investors such as Canada Pension Plan Investment Board (CPPIB), IFC, and State Bank of India.

Nithya Easwaran, Managing Director at Multiples Alternate Asset Management, highlighted Veritas’ expertise in the micro and small-medium enterprise business segments, along with its ability to scale the business while maintaining quality. Multiples PE focuses on core sectors including financial services, pharmaceuticals and healthcare, consumer, and technology.

Multiples PE, founded by Renuka Ramnath in 2009, has invested in 30 Indian companies across its first three funds. The firm’s portfolio features several unicorns, including Delhivery, Acko, PVR, Dream Sports, and Licious, each valued at a minimum of $1 billion. In the financial services space, Multiples PE has also invested in companies such as Kogta Finance, Niyo, Vastu Housing Finance, APAC Financial Services, South Indian Bank, Cholamandalam, RBL Bank, and Sanctum Wealth.

Veritas Finance, founded by Arulmany in 2015 in Tamil Nadu, primarily caters to the underserved MSME financing market in semi-urban and rural areas. With a presence in eight states and one union territory, the company offers secured small business loans, with an average ticket size of INR 5 lakh. Veritas operates through over 285 branches, serving more than 115,000 customers, and managing an asset undermanagement (AUM) of over INR 3,500 crore as of March 2023. The latest funding round led by Multiples PE reinforces Veritas’ growth trajectory and positions the company to capitalize on emerging opportunities in the MSME financing market. With the support of their investors, Veritas is well-equipped to expand its reach and provide much-needed financial solutions to underserved businesses across India.