Delhi-based microfinance institution Satya MicroCapital Ltd, focused on self-employed rural women, has raised Rs 42 crore (around $5.65 million) in a fresh funding round in the form of non-convertible debentures (NCDs) from funds managed by responsAbility Investments AG.
The non-banking financial company (NBFC) plans to deploy the fresh capital in expanding its terrestrial network and product portfolio for micro-entrepreneurs.
“With the outbreak of the third wave of Covid-19, it is quintessential for us to safeguard our national economy which is highly dependent on our SMEs. This debt funding has instilled a confidence boost in our business model," said Vivek Tiwari, MD, CEO and CIO at Satya MicroCapital.
Satya MicroCapital primarily caters to women who own businesses or are looking for business expansion. It claims to back women and micro-entrepreneurs across more than 27,835 villages of the country.
The lender offers collateral-free credit to micro-enterprises based on strong credit assessment and a centralised approval system.
According to the company’s statement, with an employee base of over 3,100 people working across 275 branches, Satya MicroCapital aims to uplift five million households by 2025. Recently, the lender said it has completed a strategic investment to pick up a 24% stake in Baid Housing Finance.
In 2021, it raised fresh equity of Rs 153 crore ($21 million) from Japan-based Gojo & Company Inc. The Japanese firm, which holds stakes in several microlenders, had led a Rs 43 crore equity funding round in Satya MicroCapital in August 2018.
Previously, the lender raised Rs 16 crore from Dia Vikas Capital in October 2017 and Rs 11.48 crore ($1.7 million) from existing investors through a rights issue in June 2018.
responsAbility Investments AG is an impact asset manager that has invested over $11 billion in emerging markets since 2003, and as an impact asset manager, focuses on climate finance, sustainable food production and financial inclusion.