Former ICICI Bank executive-founded FinReach Solutions raises Rs 21.9 crore in funding

FinReach Solutions has raised Rs 21.9 crore in a fresh funding round led by Colossa Ventures, with participation from its existing backers Michael & Susan Dell Foundation, Omidyar Network Fund Inc and Caspian SME Impact Fund IV. 

The fresh capital will help the private-sector credit guarantee facilitator scale operations and strengthen its risk and technology platform. The company aims to increase the speed and volume of guarantee assessments as it expands its role in helping lenders extend credit to small businesses.

FinReach was founded in December 2020 by Suvalaxmi Chakraborty, a former senior executive at ICICI Bank, Barclays Bank and SBM India. The firm operates a privately led Credit Guarantee Program designed to unlock lending for micro, small, women-led, agri and climate-focused enterprises that often struggle to secure loans due to limited collateral or thin credit files.

The platform connects private guarantors with lenders, reducing credit risk and enabling formal institutions to lend to viable businesses in India’s underserved regions. Its proprietary analytics engine evaluates borrower risk and facilitates guarantees at scale, helping lenders increase their exposure to MSMEs with greater confidence.

FinReach focuses heavily on tier III to tier V regions where access to formal finance remains limited. The firm claims its programs have supported 14,150 individuals so far, including over 2,050 women borrowers.

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.”