Satya MicroCapital to raise funding up to US$22 mn for future growth

Microfinance firm Satya MicroCapital Limited will be raising a fresh round of funds to the amount of $22 million led by an existing investor. Of this total amount , $15 million will be allocated to preferential shares and $ 7 Mn to Equity.

Headquartered in New Delhi, Satya currently has 325+ branches in more than 30000 villages of 225 Districts in 21 states catering to more than 8 lakh clients who seek credit help for their income generation and income growth purpose in sectors such as agriculture, animal husbandry, business/trade, production/services, and water sanitation purposes.

It is backed by Japanese investor Gojo & Company Inc and Swiss impact investor BlueOrchard Finance. Satya MicroCapital has so far disbursed a total of more than 6.15 lakh loans worth over Rs 3,709 crore with assets under management of Rs 1,700 crore. The non-banking financial company (NBFC) is mainly focused on the underbanked and under-served borrowers, especially women, with their husbands acting as co-borrowers; through an affordable credit product that allows them to start a new business or build their existing business.

The company plans to channelize these recent funding to expand its presence across national geographies and augment its diversified loan book. Securing successive fundings in such a short span of time will propel the RBI registered NBFC-MFI to diversify its portfolio of new investors.

Sharing his views on the recent round of funding, MD, CIO & CEO, Satya MicroCapital Ltd., Vivek Tiwari told the Daily Guardian, “We are certain that the funds raised will enable SATYA to accomplish its vision of reaching 50 lakh households by the year 2025. This will also catapult us towards consistent growth and empower SATYA to empower more Entrepreneurs from the marginalized sections of society”.

He also added, “The pandemic has engendered an inevitable threat to the livelihoods of self-employed women in rural boundaries who constitute our client base. We will be utilizing this funding to render essential and affordable credit services to women micro-entrepreneurs for the renaissance of their livelihood and businesses via our extensive operational network”.

Extending gratitude to esteemed investors, Vivek said, “We are deeply appreciative for our investor’s unwavering faith in our organization. Receiving this type of new and fresh money infusion supports any MFI’s business model and boosts its confidence exponentially. This will undoubtedly restore investor confidence in the sector”.