Satya MicroCapital Ltd, a New Delhi-based microlender, has raised Rs 34 crore ($4.7 million) from Swiss impact investment manager BlueOrchard Finance Ltd.
The Indian lender said in a statement BlueOrchard invested the capital equally through two funds that it manages. The funds are Microfinance Initiative for Asia (MIFA), which targets Asian microlenders, and the Japan ASEAN Women Empowerment Fund (JAWEF), which targets female micro-entrepreneurs in emerging Asian markets.
Satya MicroCapital said it will use the capital for on-lending to the micro, small, and medium enterprises, with a focus on women entrepreneurs.
In a recent interaction with VCCircle, Satya MicroCapital managing director and CEO Vivek Tiwari said the company was looking to raise about Rs 75 crore in the current financial year.
Tiwari had set up the company after quitting Satin Creditcare Network Ltd in 2016. It provides microcredit to women entrepreneurs at the grassroots level. It started lending in January 2017, and has assets under management of over Rs 100 crore.
"The funds raised will enable us to build a stronger capital base and reach more entrepreneurs by offering them finance options for their livelihood and entrepreneurial undertakings. The capital raised will also help us scale up rapidly and develop innovative offerings for a wider segment of customers," Tiwari said.
The company has 65 branches in 11 states, including Bihar, Chhattisgarh, Haryana, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and Assam.
In August, the company raised Rs 43 crore in equity funding led by new Japanese firm Gojo & Company, Inc.
In June, the company raised Rs 11.48 crore from existing investors through a rights issue. In October last year, Satya MicroCapital had raised Rs 16 crore from impact investor Dia Vikas Capital.
BlueOrchard was founded in 2001, by an initiative of the United Nations, as the commercial manager of microfinance debt investments. Its offers debt and equity financing to institutions in emerging markets. It has presence in four continents, and has invested more than $5 billion in 350 institutions across 80 countries till date.
In India, BlueOrchard has backed a number of microlenders and non-banking financial companies in the past. These include Aye Finance, Svasti Microfinance and SV Creditline.
