Red Fort Capital, which provides secured business loans to SMEs, on Wednesday said it has raised around Rs 22.6 crore in debt financing, crossing the milestone of Rs 100 crore in assets under management (AUM). The latest debt infusion includes Rs 15 crore from an undisclosed public sector bank, Rs 4.1 crore through non-convertible debentures (NCDs) through foreign portfolio investors (FPIs) and Rs 3.5 crore from USHA Finance.

Speaking on the latest debt round, Parry Singh, Founder and CEO, 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 the demand for capital continues to increase, we are ready to meet the financing needs of India’s dynamic SME sector.

Red For Capital offers secured term loans of Rs 1 crore to Rs 10 crore backed by 2x-3x property security. It also provides invoice discount facility for short term loan of Rs 25 lakh to Rs 1 crore.

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The invoice discounting solution for MSMEs enabled by the Reserve Bank of India’s Trade Receivables Discounting System (TReDS) platform had funded 41.6 lakh invoices involving Rs 1.38 lakh crore in FY 2023- 24.

According to government data, the number of invoices funded on four licensed TReDS platforms in FY24 jumped 62 percent from the previous year, while the amount involved increased by 80 percent. hundred.

In comparison, overall funding of 25.6 lakh invoices involving Rs 76,638 crore was reported in FY23 by four RBI-recognized TReDS platform operators, Receivables Exchange of India Ltd (RXIL), Invoicemart, M1 Xchange and C2FO Factoring Solutions.

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