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Suryoday Small Finance Bank raises funding from Gaja Capital, others
Photo Credit: VCCircle

Suryoday Small Finance Bank Ltd has raised Rs 62.14 crore (approximately $8.2 million at current exchange rates) in funding from its existing investors.

Suryoday said in a statement it has secured capital from Gaja Capital, Kotak Mahindra Life Company Ltd,  impact investor Lok Capital, US-based pension fund Teachers Insurance and Annuity Association of America (TIAA), and LN Bangur Group company Kiran Vyapar Ltd.

“This growth capital comes in just as we started re-engineering our business processes and digitising them including for our microfinance vertical,” R Baskar Babu, managing director and CEO at Suryoday, said.

The development comes just three weeks after VCCircle exclusively reported that the Suryoday had raised fresh private equity funding from a clutch of investors, including mid-market firm Gaja Capital and Kotak Mahindra Life Insurance.

Mumbai-based Suryoday has 20 institutional investors, including Sarva Capital, TVS Capital, German development finance institution DEG, Swiss investor responsAbility Investments and HDFC Group.

The small finance bank claims that it is strongly positioned from an assets and liabilities perspective, with a deposit base of over Rs 2,800 crore and a gross loan book of more than Rs 3,700 crore.

Suryoday began banking operations in January 2017. It was one of 10 companies to get approval from the Reserve Bank of India in September 2015 to launch a small finance bank.

In November last year, the World Bank’s investment arm, the International Finance Corporation (IFC), had proposed to offer up to $20 million (Rs 140 crore) to Suryoday in subordinated debt. At that time VCCircle had reported that the company was in talks to raise debt and equity funding as part of its efforts to grow its loan book.

It raised Rs 248 crore ($35.8 million) from three promoters and a clutch of existing and new investors in April last year.

According to VCCEdge, the data research arm of Mosaic Digital, the bank reported a total income of Rs 599.45 crore for the 2019 financial year, with a positive EBITDA (earnings before interest, tax, depreciation and amortisation) figure of Rs 283.48 crore.

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