Matrix Partners India invests in MSME lender Five Star Business Credits
Hotline: 1800 102 2007
X
Search Business Opportunities
2014-03-01

Matrix Partners India invests in MSME lender Five Star Business Credits

Investment firm, Matrix Partners India which has Rs 3,000 crore under management has announced that it has led the first institutional round of funding in Five Star Business Credits (Five Star), a small business finance company that lends secured loans to MSMEs.

Investment firm, Matrix Partners India which has Rs 3,000 crore under management has announced that it has led the first institutional round of funding in Five Star Business Credits (Five Star), a small business finance company that lends secured loans to MSMEs.

 

“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. We are excited to partner with Matrix Partners India as our first institutional investor. Matrix shared our beliefs & values in sustainably addressing this large MSME financing opportunity. This round of funding should help us further expand our branch footprint & enhance our funding base for long term expansion,” said D. Lakshmipathy, Managing Director, Five Star.
 

“Five Star has a highly differentiated, secured and sustainable lending model to address the large, underserved MSME financing opportunity. We share Lakshmipathy’s vision & passion for this sector and look forward to being his partners in this journey. Financial services is an important focus area for the firm,” said Rishi Navani, Managing Director, Matrix India.

 

Five Star with its proprietary secured lending model has catered to more than 5,000 MSME customers over the last 5 years. The company also provides loans for the purpose of home improvement to MSME customers.

 

India has 29.8 million MSMEs and a further 30 million MSMEs in the unorganized sector. Formal banking and financial channels find it challenging to address the needs of MSME customers primarily due to the challenges in assessing credit quality of such customers.

 

Related opportunities
  • Ice creams & Yogurt Parlors
    FROZEN RIBBONS are creamy ribbons of paper thin Ice-Cream. Awarded 'THE..
    Locations looking for expansion DUBAI
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Dubai DUBAI
  • CAD/CAM/CAE & Multimedia
    EduCADD is ISO 9001 : 2008 certified one of the fastest growing company..
    Locations looking for expansion Karnataka
    Establishment year 1999
    Franchising Launch Date 2005
    Investment size Rs. 10lac - 20lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bengaluru Karnataka
  • Career Counselling & Brain Programming
    About Us: Career Mosaic Pvt. Ltd. is amongst Asia’s leading consultancy for..
    Locations looking for expansion Gujarat
    Establishment year 2001
    Franchising Launch Date 2018
    Investment size Rs. 50 K - 2lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
  • Women's clothing
    About: 50 Shades is a venture of Zuhana Exporters Pvt. Ltd...
    Locations looking for expansion Tamil nadu
    Establishment year 1991
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts