CredRight Secures $10 Million Investment to Empower Small Business Owners

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CredRight, an Indian NBFC focused on lending to small business owners, has raised $10 million in fresh funding. The capital will help the company expand its loan book, upgrade technology, and widen its reach across tier 2 and tier 3 cities where credit access is limited.

Why this matters for Indian small businesses

Access to affordable credit remains a top challenge for micro, small and medium enterprises (MSMEs) in India. CredRight targets shop owners, kirana stores, and other small entrepreneurs who often lack formal credit histories. By using tailored data and digital underwriting, the company aims to bring more business owners into the formal credit system.

Planned use of funds

CredRight plans to use the new funds to:

  • Scale lending operations and disburse more small-ticket loans.
  • Invest in technology for faster credit decisions and collections.
  • Expand into new cities and deepen presence in existing markets.
  • Hire more sales and tech staff to support growth.

A timely boost amid improving digital credit ecosystem

The investment comes at a time when digital lending and the India Stack have made it easier to verify customers and process loans faster. For many local merchants, access to small, timely loans can mean stocking up inventory, upgrading equipment, or expanding services — all key to reviving local economies and supporting jobs.

Founder focus and market opportunity

CredRight’s leadership has emphasised customer-centric lending and technology-led underwriting to reduce defaults and serve customers better. With millions of micro businesses still underserved, the company sees a large market opportunity across India’s vast retail and services sectors.

What to watch next

Investors and industry watchers will be keen to see how CredRight deploys this capital to deepen penetration in smaller towns, improve customer experience, and maintain asset quality. For small business owners in India, increased competition and more tailored credit products could mean easier access to working capital when they need it most.