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New York-based investment firm Kora Management LP has picked up 4.6 per cent equity stake in financial services firm Satin Creditcare Network (SCNL) for ₹80 crore.
This equity investment in the predominantly microfinance-focussed SCNL is part of the capital mop-up of ₹203 crore done via preferential allotment and approved by shareholders on December 22, HP Singh, CMD, SCNL told BusinessLine here.
Singh said SCNL sees Kora Management as a long-term patient investor who would help the financial services firm grow its businesses digitally, forward.
“We, at Satin, are going to benefit from their (Kora Management) equity participation in terms of insights on capabilities of how they used digital technology to transform microfinance and other lending platforms. They have a lot of experience on the ground on fintech across Latin America and China,” he said.
With this transaction, Daniel Jacobs, co-founder and senior partner at Kora, will be joining SCNL’s board of directors, Singh added.
Aims fully-digital plank Singh said SCNL has taken the first few steps towards becoming a fully digital financial services firm. SCNL expects to go completely cashless on disbursements in next six to eight months, Singh said.
“Then we will look at the payment part. In phase 2, we will look at algorithm and statistical analysis to judge the borrowers for credit assessment,” he added.
Asked about the demand outlook for microfinance, Singh said demand continues to be quite robust.
Singh said SCNL was well on course to achieve its earlier guidance of assets under management of ₹5,500 crore by March-end this year.
On Monday, SCNL has deployed technology which helps it get live updates of its microfinance portfolio across 18 States in just two minutes.
Nitin Saigal, CIO at Kora, said: “On the digital side, Satin has taken important initiatives and we are excited to see the management’s commitment for the long term. We work to be constructive partners to our portfolio companies and welcome the opportunity to help shape Satin’s digital strategy.”
srivats.kr@thehindu.co.in
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