CredRight, an non-banking financial company (NBFC) based in Hyderabad, has secured US$10 million in series B funding led by Abler Nordic.

Existing investors Michael & Susan Dell Foundation and Unleash Capital also joined the round.

The new capital will be used to expand its loan portfolio, upgrade technology, and increase outreach to entrepreneurs in tier-2 to tier-4 towns.

The company provides loans to micro-enterprises in India, focusing on small shopkeepers and traders who often lack access to formal credit.

CredRight operates with a mix of digital lending and a network of 125 branches across four Indian states, serving over 20,000 businesses.

Abler Nordic, which now becomes CredRight’s largest equity investor, said it will support the company in scaling operations and improving governance.

India’s micro, small, and medium enterprises sector continues to face a significant credit gap, particularly in semi-urban and rural areas.

🔗 Source: CredRight

🧠 Food for thought

1️⃣ India’s massive micro-enterprise credit gap creates substantial market opportunities

The numbers behind CredRight’s market opportunity reveal the scale of financial exclusion in India’s smallest business segment.

With only 14% of India’s 64 million micro-entrepreneurs having access to individual business loans, there’s a $169 billion credit gap specifically in the micro segment alone1. This represents roughly 26 million underserved business owners who lack formal financing options.

CredRight’s current reach of 20,000+ micro-enterprises means they’re serving less than 0.1% of the total addressable market, indicating enormous room for expansion1. The company’s goal to reach 10 million nano enterprises would still represent only about 15% of the total micro-entrepreneur population.

This market size explains why specialized lenders like CredRight can attract patient capital from impact investors despite broader lending industry challenges.

2️⃣ The “phygital” approach addresses trust barriers in underserved markets

CredRight’s combination of digital systems with physical presence through 125 branches reflects the practical realities of serving India’s smallest businesses.