FinReach raises Rs 21.9 Cr led by Colossa Ventures

FinReach Solutions has raised Rs 21.9 crore (around $2.6 million) in a fresh round led by Colossa Ventures, along with existing investors Michael & Susan Dell Foundation, Omidyar Network Fund Inc, and Caspian SME Impact Fund IV. 

The company had earlier raised Rs 32.5 crore (around $3.9 million) from its existing investor group.

The new capital will be used to scale operations, expand guarantee facilitation, and strengthen the company’s risk and technology stack to support larger volumes of credit assessments.

Founded in December 2020 by Suvalaxmi Chakraborty, former senior executive at ICICI Bank, Barclays Bank, and SBM India, FinReach focuses on small entrepreneurs who struggle to access formal credit due to lack of collateral and limited credit history.

FinReach operates a private-sector Credit Guarantee Program, enabling lenders to extend credit to micro, small, women-led, agri, and climate-focused enterprises. The platform connects private guarantors with lenders to de-risk loans and expand access to formal credit for underserved MSMEs.

The firm’s analytics-led guarantee engine evaluates borrower risk, facilitates guarantees, and supports lending in tier-III to tier-V regions. FinReach says its programs have reached 14,150 individuals, including over 2,050 women borrowers.

FinReach works with development finance institutions including British International Investment and global foundations supporting credit-access initiatives.