Red Fort Capital, which provides secured business loans to SMEs, on Wednesday said it has raised around Rs 22.6 crore in debt funding, crossing the milestone of Rs 100 crore in total assets. The latest debt infusion includes Rs 15 crore from an undisclosed public sector bank, Rs 4.1 crore through non-convertible debentures (NCDs) via foreign portfolio investors (FPI), and Rs 3.5 crore from USHA Finance.
Speaking on the latest debt round, Parry Singh, Founder & CEO of Red Fort Capital said, “PSU banks understand the importance of SME lending and the vital role SMEs play as the second-largest employer in the country. As demand for capital continues to surge, we stand ready to meet the financing needs of India’s dynamic SME sector.”
Red For Capital offers secured term loans from Rs 1 crore to Rs 10 crore backed by 2x-3x real estate collateral. It also provides invoice discounting facility for Rs 25 lakh to Rs 1 crore short-term loan.
Meanwhile, invoice discounting solution for MSMEs enabled by the Reserve Bank of India’s platform Trade Receivables Discounting System (TReDS) had financed 41.6 lakh invoices involving Rs 1.38 lakh crore during the financial year 2023-24. Currently, four operators Receivables Exchange of India Ltd (RXIL), Invoicemart, M1 Xchange and C2FO Factoring Solutions are licensed by the central bank to operate TreDS.
According to the government data, the number of invoices financed across four licensed TReDS platforms in FY24 jumped 62 per cent from the previous year while the amount involved was up by 80 per cent.
In comparison, aggregate financing of 25.6 lakh invoices involving Rs 76,638 crore was reported in FY23 across four TReDS platform operators RXIL, Invoicemart, M1 Xchange and C2FO Factoring Solutions.