back Back

Northern Arc Capital raises $75m from Dutch Bank FMO

By Gloria Mathias

June 28, 2024

  • co-lending
  • Dutch Development Bank
  • fintech funding

Northern Arc Capital, Karnataka Bank, Loan Origination, Co-lending, Loan Solutions, NBFCs, FinTechs, Fintech news India, Loans processes, India News, Fintech News, Fintech funding, fintech news, Fintech India, FMO, Dutch DEvelopement Bank, Northern Arc Capital, an Indian NBFC, has announced the issuance of senior secured, listed Non-Convertible Debentures (NCDs) worth $75 million (equivalent to INR 620 crore), bringing its overall exposure to $125 million.

This significant transaction has been subscribed to by FMO, the Dutch entrepreneurial development bank.

The NCDs will be listed on BSE Limited (BSE) and have a five-year tenure. The funds raised through this issuance will be strategically deployed in retail microloans, MSME loans, and green loans, reflecting Northern Arc’s commitment to fostering inclusive economic growth and environmental sustainability.

Ashish Mehrotra, Managing Director & CEO of Northern Arc Capital, shared, ” This substantial investment from FMO underscores our unwavering commitment to transforming the financial landscape for underserved individuals and businesses in India. By channelling these funds into microloans, SMEs, and green projects, we aim to create a cascading effect that promotes sustainable economic growth and financial inclusion. Our innovative platforms, such as nPOS and Nimbus, play a crucial role in this mission by ensuring seamless loan processing and effective debt management.”

“Northern Arc Capital’s dedication to leveraging technology is exemplified in its proprietary platforms, nPOS and Nimbus. nPOS, a cloud-based API-enabled platform, streamlines loan processes for partnership and co-lending businesses, while Nimbus provides comprehensive end-to-end debt transaction management. These support efficient loan processing and debt management, ensuring that Northern Arc can meet the diverse needs of its clients with data and technology,” added Mehrotra.

Huib-Jan de Ruijter, Chief Investment Officer at FMO, stated, “We are very pleased to be able to provide long-term funding for MFIs and NBFCs in India, which have limited access to term funding from capital markets. This local currency facility to Northern Arc, supports entrepreneurship and innovation and encourages the formalization and growth of SMEs and microenterprises. We want to thank Northern Arc for our partnership, enhancing financial inclusiveness across India.”

As Northern Arc Capital continues its journey, the focus remains on innovation, resilience, and inclusivity for economic empowerment and sustainability. The latest investment from FMO reaffirms Northern Arc’s vision of creating a financially inclusive future, driving meaningful impact across India’s diverse communities.

Previous Article

June 27, 2024

MSME Day: 5 FinTechs driving financial inclusion for SMBs in Europe

Read More
Next Article

June 28, 2024

Avidia Bank joins Q2 and Personetics to modernize its Digital Banking experience

Read More

IBSi Daily News Analysis


July 19, 2024


SMEs leverage cloud to gain competitive edge, study shows

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News


4 BNPL platforms providing financial freedom to consumers in MENA

Read More


Finastra & CredAble team to offer supply chain finance to banks globally

Read More

July 22, 2024

Jifiti launches ‘Tap Now, Pay Later’ to enable banks to deploy loans with ease

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q2 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
Get your copy now! IBSi Sales League Table 2024