Sindhuja Microcredit secures $14.5m in Series C Funding round

By Gloria Mathias

Sindhuja Microcredit, a new-generation digital and rural-focused microfinance institution (MFI) providing financial services to women entrepreneurs, has raised $14.5 million (Rs. 120 crores) in a Series C funding round from GAWA Capital (through its vehicle Huruma Fund) and Oikocredit.

The company will deploy the funds to expand the business in its existing geography and foray into new geographies and product lines.

Abhisheka Kumar, Managing Director and Malkit Singh Didyala Chief Executive Officer, Sindhuja Microcredit said, “GAWA Capital and Oikocredit are well-known international impact investors, and it is a matter of pride for us to have their backing. We are also humbled by the continued confidence shown by Carpediem Capital and Abler Nordic, our existing investors who participated in our pre-Series-C round. The funding further strengthens our commitment to make financial services easily available to the financially excluded and MSME entrepreneurs through technology-driven solutions.”

Agustín Vitórica, Co-Founder, GAWA Capital said, “We’re thrilled to join forces with Sindhuja Microcredit and look forward to supporting their growth and expansion into new areas and products. Sindhuja is focused on supporting people from rural areas and women borrowers, and our collaboration aims to empower India’s underserved farming community. We’re confident that the company is poised to meet this challenge by providing products and services of value to this segment.”

Abhinav Natani, Equity Analyst, Oikocredit added, “Our decision to invest in Sindhuja Microcredit, which is dedicated to serving underserved states in India, underscores our commitment to provide access to finance for low-income segments of society. We are thrilled to deepen our partnership with Sindhuja and to work together to elevate financial inclusion to new heights.”

Earlier, Sindhuja raised Series A funding from Carpediem Capital, which came in as the first institutional investor backing the company at an early stage.

The company raised Series B funding during the first phase of the COVID-19 pandemic and pre-Series C recently. Abler Nordic led both rounds. Sindhuja, in its six years of operation, has provided micro-loans to over-employed women micro-entrepreneurs across nine states in the northern, eastern, and western parts of India.