Satya MicroCapital, backed by Japanese impact investor Gojo & Company Inc, has announced its entry into affordable housing finance market through its soon to be launched subsidiary, the company said in a statement.
The New Delhi-based microlender is also extending capital of Rs 50 crore to its subsidiary and shall be raising additional Rs 50-75 crore capital in the current fiscal year.
"Post successful acquisition and renaming of Baid Housing Finance, the NBFC-MFI intends to lay the foundation of its new arm which will integrally function in the Indian housing finance space. Satya MicroCapital plans to serve the need for affordable housing for its current customer base and to cater to the untapped affordable housing market across the country," the statement said.
Last year in December, the lender said it had completed a strategic investment to pick up a 24% stake in Baid Housing Finance.
Vivek Tiwari, managing director, chief executive and chief investment officer at Satya MicroCapital said, "We have received and completed regulatory approval from RBI (Reserve Bank of India) for the acquisition and we are eagerly waiting to get the transition completed. We aim to create a loan book of Rs 250 crore in the first year of operation. Our foremost inclination will be towards financially backing the first-time homeowners to build their dream home."
Last month, Satya MicroCapital focused on self-employed rural women, had raised fresh funding of $15 million (around Rs 117 crore) led by its existing Japan based investor-Gojo & Company Inc.
Gojo & Company, which holds stakes in several microlenders, has invested multiple times in Satya MicroCapital including equity funding round in August 2018. Prior to that, the microfinance firm has also raised capital from Dia Vikas Capital and Swiss impact investor BlueOrchard Finance.
Early this year, it had also 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.
With the MFI’s expertise, Satya MicroCapital aspires to tap the informal segment of customers in rural areas to provide "hassle free and accessible" housing finance solutions.
“We have a once in a generation opportunity in front of us in terms of filling the gap of financing needs for home ownership of bare foot entrepreneurs. Satya is looking forward to extending various tailor-made loan products for bridging the pucca homeownership gap for mass population,” said Ranjeet Mishra, CEO designate of the housing finance arm.
Satya MicroCapital was floated by Vivek Tiwari, who bought New Delhi-based non-bank lender TFC Finvest Ltd and rebranded it as Satya MicroCapital.
Started operations in 2017, the firm currently now has more than 350 branches across over 35000 villages in 225 districts of 21 states catering to more than nine lakh customers seeing 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.
