CARE Ratings signs pact with GREX to grade startups
Credit rating agency CARE has entered into an agreement with GREX Alternative Investments Market, a stock exchange-like platform, to assess and grade startups and SMEs registered on the latter's platform.
The move is expected to help investors to make an informed decision in regards to the attractiveness of a specific company and its potential risk.
The Pune-based company provides an exchange-like investment platform for startups and unlisted firms looking to raise funds.
This agreement will provide a broad analytical framework within which CARE Ratings will conduct its rating or grading exercises for companies, GREX Vice President Kapil Kaul said in a statement.
"Since inception, GREX has been striving to address challenges of credit-worthiness and poor perception of unlisted firms. This association aims to bring a huge amount of objectivity and investments in private companies, further strengthening the basic tenet of transparency propagated by GREX," Manish Kumar Co-Founder and CEO of GREX said.
Rajesh Dubey, a shareholder of GREX said: "For GREX investor is the focal point. Through GREX-CARE grading of issue/issuer, GREX aims to provide maximum information on the sustainability of business to the investors."