Rural-focussed microfinance institution (MFI) Sindhuja Microcredit has raised $14.5 million (Rs 120 crore) in its Series C funding round from Spanish impact investment firm GAWA Capital, through its vehicle Huruma Fund, and the Netherlands-headquartered social impact investor Oikocredit.
The Noida-based MFI will use the capital to expand its business in its existing geographies, while also entering new geographies and product lines, it said in a statement.
The funding further strengthens commitment to make financial service easily available to the financially excluded and MSME entrepreneurs through technology-driven solutions, Abhisheka Kumar, managing director, and Malkit Singh Didyala, chief executive officer, Sindhuja Microcredit, said in a statement.
The latest round comes about a year after Sindhuja raised Rs 32 crore in pre-series C funding in March 2022. This round, similar to its previous outing in May 2020, was led by Norway-based impact investor Nordic Microfinance Initiative (NMI), with participation from mid-market private equity firm Carpediem Capital. Both investors had together put in $8.7 million (Rs 66 crore) in Series B round.
Previously, Carpediem Capital invested $4 million in Sindhuja Microcredit's Series A round of funding.
Set up in 2018, Sindhuja, registered as a non-banking MFI, says it has so far provided micro-loans to skilled women entrepreneurs who lack capital in rural and semi-urban population. It also provides business loans to traders, shopkeepers and farmers for working capital needs or for expanding their businesses.
Overall, Sindhuja has secured nearly Rs 242 crore from institutional investors since inception.
The company operates 235 branches and has Rs 1,000 crore in assets under management (AUM). It is present across nine states in northern, eastern and western parts of India.
“We look forward to support (Sindhuja’s) growth and expansion into new areas and products,” said Agustín Vitórica, co-founder, GAWA Capital . “Sindhuja is focused on supporting people from rural areas and women borrowers. We're confident that the company is poised to meet this challenge by providing products and services of value to this segment.”
Unitus Capital acted as the exclusive financial advisor for the transaction and Vertices Partners acted as the legal counsel for Sindhuja Microcredit.
