Satya MicroCapital has raised ₹34 crore from Swiss impact investment manager BlueOrchard Finance, which the microlender expects to use for on-lending to micro, small, and medium enterprises with a focus on women entrepreneurs.

BlueOrchard invested the capital equally from two funds – Microfinance Initiative for Asia (MIFA) and Japan ASEAN Women Empowerment Fund (JAWEF).

MIFA is an initiative exclusively for Asian microfinance institutions, while JAWEF invests with female micro-entrepreneurs in the south-east Asian frontier and emerging markets, Satya MicroCapital said in a statement.

“The funds raised will enable us to build a stronger capital base and reach more entrepreneurs by offering them finance options for their livelihood and entrepreneurial undertakings. The capital raised will also help us scale up rapidly and develop innovative offerings for a wider segment of customers,” said Satya MicroCapital Managing Director and Chief Executive Officer, Vivek Tiwari.

BlueOrchard, founded in 2001, is a United Nations’ initiative. The investment manager fosters inclusive and climate-smart growth, and has invested more than $5 billion in 350 institutions across 80 countries.

New Delhi-headquartered Satya MicroCapital provides Group Lending (GL) to economically-active sections of rural and urban areas in India. It has a presence across 11 States, including Bihar, Chhattisgarh, Haryana, Punjab, Rajasthan, Uttar Pradesh and Assam, among others.

Satya MicroCapital, in August, raised ₹43 crore in equity funding, led by new Japanese firm Gojo & Co. Prior to that in June, it raised ₹11.48 crore from existing investors through a rights issue. In October 2017, it raised ₹16 crore from impact investor Dia Vikas Capital.

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