Five Star Business Credits (FSBC), and India-based micro and small business financing firm, has received an undisclosed investment from venture capital firm Matrix Partners, according to DNA India.
The Indian company will use the new capital to expand its current 30-branch network across Tamil Nadu, the report said.
According to Matrix Managing Director Rishi Nevani, one of the reasons that they chose FSBC as a recipient of its investment was its "differentiated, secured and sustainable lending model to address the large, but under served micro, small and medium enterprise (MSME) financing opportunity."
In a statement, Matrix said there are almost 60 million MSMEs in India in both organized and unorganized arenas, the report added.
D Lakshmipathy, the managing director of FSBC, shared the company's plan for the capital infusion from Matrix: "This round of funding should help us further expand our branch footprint and enhance our funding base for long-term expansion."
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