Veritas Finance Pvt Ltd, a non-deposit taking NBFC, announced that it has raised ₹240 crore through an internal funding round participated by its existing key investors Lok Capital, Evolvence, and Avendus Future Leaders Fund to meet its growth plans.

“The funds would help in strengthening the company’s base and provide significant runway for growth. The Company may soon approach the market with an IPO in the next 12 months to augment its growth plans,” said Veritas MD & CEO D. Arulmany in a statement.

Veritas started its operations in 2015 with an aim to providing finance to micro small and medium enterprises (MSME) in India through short-term working capital requirements, medium-term business loan requirements, medium-term used commercial vehicle loans and long-term housing construction needs.

As on June, Veritas Finance has a loan book of ₹6,091 crore with cumulative disbursement since inception crossing ₹10,400 crore. It has presence in over 400 branches across ten states.

For the June quarter, the company reported total income of ₹342 crore and net profit of ₹66 crore.