Warburg Pincus-backed Capital First investing in Satin Creditcare
Photo Credit: Abhijit Tambe/VCCircle

Satin Creditcare Network Ltd said on Friday said it will raise about Rs 35 crore ($5.5 million) from non-banking financial company Capital First Ltd.

The Delhi-based microlender said in a stock-exchange filing that it will allot 1.23 million optionally convertible redeemable preference shares at Rs 284.53 apiece to Capital First.

Capital First is backed by private equity firm Warburg Pincus.

Satin Creditcare was formed in 1990 as a non-banking financial company (NBFC) to provide individual loans to urban shopkeepers to purchase generators for their businesses. It evolved to become a microfinance firm with a presence in North India.

In March, Asian Development Bank invested $10 million (around Rs 65.8 crore) in Satin Creditcare through a preferential allotment in return for a 4% stake.

Satin Creditcare had first raised private investment from Lok Capital and columnist Swaminathan S Anklesaria Aiyar way back in 2008 and later brought on board other investors. Currently, its investors include C Cube Angels, MicroVest Capital Management LLC, NMI Frontier Fund and The SBI FMO Fund, among others.

It caters to the low-income group and offers micro, MSME and small-ticket loans against property as well as product financing and business correspondent services through Taraashna Services Pvt. Ltd.

Satin Creditcare claims to be the third-largest microlender in the country in terms of gross loan portfolio. Its gross loan portfolio stood at Rs 4,067 crore as of 31 March 2017.

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