Satya MicroCapital raises INR 500 mn via NCDs to Aviator Global Investment Fund, Northern Arc Capital 

Vivek Tiwari, MD, Satya MicroCapital

Satya MicroCapital Limited (Satya), a tech-enabled micro-lending NBFC, has raised around INR 500 million of debt fund by issuing Non-Convertible Debentures (NCDs) to Mauritius based Aviator Global Investment Fund and Northern Arc Capital (formerly IFMR Capital) for three years. The company plans to use the funds for lending to Indian micro, small & medium enterprises (MSMEs) that are predominantly run by women.

This is a transaction where a Foreign Portfolio Investor (FPI) invests jointly with a domestic lender fulfilling the RBI’s requirement of an FPI investment not exceeding 50% in corporate bond issuance. Satya has also recently raised INR 300 million of foreign debt fund managed by responsAbility.

Vivek Tiwari, MD & CEO, Satya MicroCapital, said, “We have built a strong base of over 3,00,000 clients in over 10000 villages in 15 states across the country having a portfolio of around INR 7.5 billion in two and half years of our journey. This fresh debt fund will help us scale up our operational base to new territories while continuing to develop further innovative credit offerings and ensuring complete end-to-end digitally controlled business processes being deployed.”

The Reserve Bank of India-registered micro-finance institution has recently become the first such institution to cross a whopping INR 1 billion worth of cashless collections in less than two and a half years since its inception. With over 2.85 lakh active clients, about nearly one-third of Satya’s total installments of loans were collected digitally.

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