SBFC Finance Ltd, a non-bank lender focussed on micro, small, and medium-sized enterprises, has tapped an offshore investor to help expand its operations.
The Mumbai-based lender said it is raising Rs 400 crore ($46 million) from British International Investment (BII), the UK government’s development finance institution, to extend loans to low-income MSMEs and women borrowers.
Around half of the proceeds will help entrepreneurs with low household income while the other half will target women borrowers. The expanded access to finance will help up to 5,000 customers improve economic opportunities and income levels, the company said in a statement.
SBFC provides loans to MSMEs across small towns in India. The non-bank lender operates across 197 branches in 16 states and two union territories. The company operates in a niche segment of ticket size ranging from Rs 5-30 lakh, and it largely caters to self-employed entrepreneurs. It has served more than 90,000 customers across India.
The company has assets under management of Rs 8,148 crore and recorded a net profit of Rs 251 crore for the first nine months of 2024-25.
“This fundraise will help us fund more low-income entrepreneurs and women who want to make a difference in society. In India, access to credit is a challenge with a large population of rural and semi-urban India needing a helping hand to enhance their businesses,” said Narayan Barasia, chief financial officer, SBFC.
BII has been investing in India for nearly four decades. It has backed various Indian non-bank lenders over the years. These include Shubham Housing Development Finance, Aye Finance, Namdev Finvest, and Indifi Technologies.
