Microlenders Satya MicroCapital and Light Microfinance have raised debt capital from common foreign and domestic lenders.
Satya MicroCapital mobilised $7 million (Rs 49.8 crore) while Light Microfinance mopped up $5 million by issuing non-convertible debentures to Mauritius-based Aviator Global Investment Fund and Indian debt platform Northern Arc Capital.
The transaction was facilitated by Mumbai-based investment bank Vidura Capital.
Sameer AH, founder of Vidura Capital, said the transaction is an instance of a foreign portfolio investor's (FPI) joint investment with a domestic lender to fulfil the Reserve Bank of India’s requirement to cap FPI investment at 50% in a corporate bond issuance.
Satya MicroCapital will use the funding to expand to new regions and develop new products, managing director Vivek Tiwari said. The company has a presence in over 10,000 villages across 15 states in the country.
Earlier this month, Swiss impact investor responsAbility Investments had pumped more money in Satya MicroCapital.
Rakesh Kumar, CEO at Light Microfinance, said its technology-driven platform provides loans to rural women to boost their incomes. The Gujarat-based company caters to over 120,000 women across three western states.
Northern Arc Capital Ltd was founded as IFMR Capital in 2008 and was earlier a microfinance institution. It secured a fresh investment of Rs 910 crore (around $130 million) from a clutch of institutional investors earlier this year.
*This article has been updated to modify the amount that the two microlenders raised.