Swiss impact investor BlueOrchard-backed Satya MicroCapital, focused on self-employed rural women, said it is eyeing up to $22 million (around Rs 166 crore) in a fresh funding to be led by an existing investor.
The Delhi-based non-banking financial company (NBFC) said that as part of the transaction, $15 million (around Rs 113 crore) will be alloted to compulsorily convertible preference shares (CCPS) and $7 million (around Rs 53 crore) via equity.
Satya MicroCapital plans to use the money for expansion of its geographical footprint and ramping up loan book.
"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 endow Satya to empower more Entrepreneurs from the marginalized sections of society," said Vivek Tiwari, MD, CIO and CEO, Satya MicroCapital Ltd.
“The pandemic has engendered an inevitable threat to livelihoods of self-employed women in rural boundaries who constitute our client base. We will be utilising 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," he added.
The company claims to back women and micro-entrepreneurs in across India’s 27,835 villages.
The lender offers collateral-free credit to micro-enterprises based on strong credit assessment and a centralised approval system.
Recently, Satya 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.
Last year in December, the lender said it had 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.
Earlier, Satya 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.
