Chennai based NBFC Five Star Business Credits has raised funds from Matrix Partners India in order to expand the branch network and grow the business.
Chennai based NBFC Five Star Business Credits has raised funds from Matrix Partners India in order to expand the branch network and grow the business.
Five Star with its proprietary secured lending model has catered to more than 5,000 MSME customers over the last five years. It also provides loans for home improvement to MSME customers.
“MSME lending is a significantly underserved market in India not addressed by formal financial channels. We have built a unique credit assessment model for deserving customers that run small but healthy businesses. All our loans are collateral backed. This round of funding should help us further expand our branch footprint and enhance our funding base for long-term expansion,” said D Lakshmipathy, Managing Director, Five Star.
Five Star caters to customers such as small shop owners (provision stores, small restaurants, textile stores, bakery outlets, medical stores, etc), small & medium machine shop operators, self employed people, etc. It is present across 30 branches in Tamil Nadu and plans to further expand its footprint across different states in India.
“Five Star has a highly differentiated, secured and sustainable lending model to address the large, underserved MSME financing opportunity. We share Lakshmipathy’s vision and passion for this sector and look forward to being his partners in this journey. Financial services are an important focus area for the firm,” said Rishi Navani, Managing Director, Matrix India.
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