FinReach raises ₹21.9 crore funding led by Colossa Ventures

FinReach Solutions, a private-sector credit guarantee facilitation services provider, has secured Rs 21.9 crore (around $2.6 million) in a fresh funding round led by Colossa Ventures.

The round also saw participation from existing investors Michael & Susan Dell Foundation, Omidyar Network Fund and Caspian SME Impact Fund IV.

The new funds will be used to expand operations, strengthen its risk and technology platform, and improve its ability to assess and provide guarantees quickly and at scale.

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Suvalaxmi Chakraborty, Founder and Managing Director of FinReach, said, “Access to credit is a fundamental driver of economic empowerment. Micro and small enterprises are the heartbeat of India’s local economies. Our mission is to bridge the gap between lenders and unserved & underserved entrepreneurs. This fundraise will help us expand our guarantee facilitation business and enhance our risk & tech stack to make lending more inclusive and efficient.”

Ashu Suyash, Founder & CEO, Colossa Ventures, said, “At Colossa Ventures, we back businesses addressing India’s most critical gaps with scalable, purpose-led innovation. FinReach embodies this mission through its credit analytics and technology-driven credit guarantee platform that expands formal credit access for underserved MSMEs. By de-risking lenders and enabling viable entrepreneurs to secure timely, affordable capital, FinReach is catalysing meaningful economic inclusion. Our investment reflects our conviction in their approach of building the next-generation infrastructure of trust for small business lending in India.”

About FinReach 

Founded in 2020 by Suvalaxmi Chakraborty, FinReach runs a private Credit Guarantee Program that helps unlock loans for micro, small, women-led, agri, and climate-focused businesses.

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By linking eligible guarantors with lenders, FinReach lowers credit risk, making it easier for promising small businesses to get affordable loans.
The company uses its own tech-driven analytics platform to assess risk and enable MSME credit at scale, while improving capital efficiency.

FinReach focuses on Tier-3 to Tier-5 regions, supporting micro-entrepreneurs, women-led businesses, and small farmers who often struggle to get loans due to lack of collateral.

So far, FinReach’s programs have helped more than 14,150 people, including over 2,050 women borrowers.

By reducing credit risk and boosting lender confidence, FinReach is promoting financial inclusion and supporting entrepreneurship, jobs, and sustainable economic growth across India.

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