Sindhuja Microcredit raises $5m to expand rural lending

By Aarav Garg

Sindhuja Microcredit has raised $5 million in a Pre-Series D funding round to support the expansion of its lending operations and strengthen its capital base as demand for rural and digital financial services continues to grow in India’s microfinance sector.

The round saw participation from existing investors Abler Nordic, GAWA Capital through its Huruma Fund vehicle, and Oikocredit. The company said the funding will be used to scale access to responsible credit for underserved communities, particularly women entrepreneurs and MSMEs.

Abhisheka Kumar, Co-Founder and Managing Director, and Malkit Singh Didyala, Co-Founder and Chief Executive Officer, Sindhuja Microcredit said, “We are making significant progress in our mission in  touching the lives of low-income women borrowers from under-served households as well as in making financial services accessible to the financially excluded and MSME entrepreneurs through efficient, customer-friendly and technology-enabled solutions.”

Founded as a rural-focused digital microfinance institution, Sindhuja Microcredit provides loans and financial services to self-employed women and micro-entrepreneurs across India. The company said it has served more than 500,000 borrowers over the past eight years and currently operates through 366 branches across 12 states.

India’s microfinance sector has continued to see steady investor interest, particularly in institutions focused on women borrowers and rural financial inclusion.