TruCap Finance, an MSME-focused NBFC, has signed a binding agreement with Zeal Global Opportunities Fund to raise up to ₹105 crore through combination of equity shares, convertible warrants, and non-convertible debentures.
The fund raised would comprise of ₹80 crore in equity and convertible warrants, while ₹25 crore would be infused through NCDs.
Rakesh Sethi, Chairperson of the Board of TruCap said the current funding round once completed will enhance the company’s equity base to about ₹325 crore.
Rohan Juneja, MD & CEO at TruCap said an enhanced equity base will further bolster the company’s mission to address the rapidly increasing credit demand at the grassroots, especially with the recent expansion in Gujarat, which increases its presence to seven States.
With its proprietary data acquired through disbursement of over 1 lakh loans, the company has significantly reduced turnaround time, scaled sourcing capabilities and collections strategies for small businesses lending.
Ritesh Abbi, CEO, Zeal Global Opportunities Fund said TRU’s impact-led inclusion metrics demonstrated by serving new-to -credit borrowers and small entrepreneurs in tier-II and -III cities is impressive.
TRU has also proposed to integrate the retail MSME lending vertical of Exclusive Leasing and Finance (EZ Capital) with itself.
An NBFC providing affordable finance to MSME sector, EZ Capital currently operates across 10 branches with 109 team members in Delhi NCR and Punjab.
VK Bhandari, Chairman, EZ Capital said “The combined expertise will foster deep sourcing, distribution, and servicing capabilities to build a pristine quality loan book, via L-a-a-S partnerships with banks and financial institutions to support inclusive economic outcomes for all.
TRU provides MSME business loans and gold loans through a network of over 67 branches in Maharashtra, Delhi-NCR, Madhya Pradesh, Goa, Gujarat, and Rajasthan. The company plans to grow its branches to over 75 by next March. Till date, it has disbursed ₹1,132 crore through 121,000 loans to underserved businesses in India.