CARE Ratings signs pact with GREX to grade startups

MUMBAI: CARE Ratings has entered into an agreement with investment platform GREX to assess and grade startups and small & medium enterprises in the country. The ratings are intended to benefit companies and lenders that shy away from investing in startups due to weak disclosures and lack of information. There are almost 400 companies registered with GREX and information on 12 of them will be made available soon on its platform.

“The grading/rating would be done keeping in mind the expectations of various market participants and nuances of the high-growth companies,” said DR Dogra, MD & CEO of CARE Ratings. The tie-up will provide a broad analytical framework within which CARE Ratings will conduct its rating exercise. The information may be useful for investors seeking to ascertain the attractiveness of a company and its potential risk. “This association aims to bring objectivity and investments in private companies,” said Manish Kumar, cofounder and chief executive of GREX.