Satin Creditcare raises $8M from SBI-FMO fund

By Ishaan Gera

  • 22 Jun 2015

Microfinance firm Satin Creditcare Network Ltd has raised Rs 51.3 crore ($8.1 million) through issue of equity shares and convertible share warrants to SBI FMO Emerging Asia Financial Sector Fund Pte Ltd, it said on Monday.

The Delhi-based microlender raised the money through issue of 32,30,000 equity shares at Rs 130 each and 28,70,000 share warrants at the same amount to the joint fund run by SBI Holdings of Japan and Netherlands Development Finance Company (FMO).

The fund is managed by SBI Ven Capital, a Singapore-based subsidiary of SBI Holdings, Japan.

Suramya Gupta, who heads the India business of for SBI Holdings (Japan), will be joining the board of SCNL as part of investment by SBI-FMO.

"We see a lot of potential in Satin as it is already one of the largest MFIs in India (with an asset size nearing $350 million) and importantly has a leadership position in the structurally under-penetrated and fastest growing region of Northern India," said Brijesh Pande, managing director and fund manager of SBI-FMO.

Satin Creditcare had raised $10 million via the external commercial borrowing route in January from WorldBusiness Capital, a US-based lender.

The Delhi-based MFI, which is one of the fastest growing players in its business with its portfolio size doubling to Rs 2,140.65 crore for the year ended March 31, 2015 over the year-ago period, has been able to raise Rs 2,351.09 crore through a mix of debt funding, securitisation and cash credit.

It counts investors such as ShoreCap II Ltd (managed by Equator Capital), Danish Microfinance Partners K/S, Microvest Mauritius Ltd. and Norwegian Microfinance Initiative (NMI) Fund III KS.

Religare Capital Markets and ICICI Securities Ltd were the exclusive advisors to SCNL in the latest funding round.

The microfinance sector has been able to attract a lot of investment since the beginning of the year. With Bandhan ready to start banking operations in August and most of the MFIs waiting for a small finance bank licence, the sector is expected to witness a major change in the coming years.

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