Startup Originals Team
BSE SME-listed Veefin Solutions has received board approval to raise up to ₹35 crore through the issuance of non-convertible debentures (NCDs). The company plans to raise the funds through one or more private placement tranches, giving it additional capital to support expansion and strengthen its business operations without diluting shareholder ownership.
How Will the Funds Be Raised?
As approved by the board, Veefin will issue up to 3.5 lakh non-convertible debentures (NCDs), each with a face value of ₹1,000. The debt instruments will be issued on a private placement basis, while the board has authorized designated officials to finalize key terms such as tenure, coupon rate, and other conditions before the allotment.
Purpose of the Fundraise
The company intends to use the additional capital to accelerate its business growth plans across India. The debt raise is expected to provide financial flexibility for business expansion, strengthen working capital, support future acquisitions, and fund strategic initiatives as Veefin continues to grow its digital lending and supply chain finance platform.
Why This Move Matters
Raising funds through debt allows Veefin to secure fresh capital while avoiding dilution of existing shareholders’ equity. The announcement also comes shortly after shareholders approved the company’s proposal to migrate from the BSE SME platform to the main boards of BSE and NSE, marking another important step in its long-term growth strategy.
Looking Ahead
With fresh capital available, Veefin is expected to strengthen its presence in India’s digital lending and supply chain finance market. The company aims to invest in expansion, improve its technology offerings, and pursue new business opportunities as demand for digital financial solutions continues to grow.
