Money & Banking

Satya MicroCapital raises ₹43 cr led by Gojo & Company

Rajesh Kurup Mumbai | Updated on August 05, 2018 Published on August 05, 2018

New Delhi-based micro-finance firm Satya MicroCapital has raised ₹43 crore in a round of funding led by Japan’s Gojo & Company, along with existing investor Dia Vikas Capital. The company plans to use the proceeds to expand its presence across existing and newer geographies and build a diversified loan book.

The latest round of funding follows a rights issue of ₹11.5 crore in May 2018, and a ₹16-crore PE infusion from Dia Vikas Capital in October 2017.

“With this funding, we are looking at widening our footprint across the 11 states we are present in. With the opening of additional branches in these regions, we will reach out to remotest of the regions where credit facility is the need of the hour,” said MD & CEO Vivek Tiwari.

Satya MicroCapital, which began its operations across five States, now has 55 branches in 11 States.

“The plans are in sync with the company’s aim to give a boost to 5 million entrepreneurs in both rural and semi-urban markets by 2025,” he added.

For the Tokyo-headquartered Gojo & Company, this is the first investment in an Indian microfinance institution. It had earlier invested in Ahmedabad-based Ananya Finance for Inclusive Growth.

Dia Vikas Capital is a subsidiary of Opportunity International Australia and was established in 2008 as a social investor to support Indian microfinance firms.

Mumbai-based advisory firm for private equity investments, Vidura Capital, acted as Satya’s exclusive advisor for the deal.

Satya MicroCapital provides loans to small entrepreneurs in both rural and urban areas. Its Limited Liability Group (LLG) model focuses on women, with their husbands acting as co-borrowers, through a credit product that allows them to start a new business or build their existing business.

The company started lending in January 2017, and had Assets Under Management (AUM) of ₹275 crore as of July 31, 2018. It had also crossed a milestone of one-lakh active loan clients and cumulative credit disbursements worth ₹300 crore.

Published on August 05, 2018
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