Credit and Finance for MSMEs: Microfinance startup Satya MicroCapital has raised a fresh round of equity capital. The company has now secured Rs 153.25 crore from existing backer Japan-based impact investor Gojo & Company Inc. around six months after it raised Rs 72.5 crore from Swiss impact fund BlueOrchard Finance. Gojo & Company had earlier backed Satya with Rs 105 crore round in May 2020. The latest investment takes the total fundraising by the company, which has provided microloans to over 4.5 lakhs micro women entrepreneurs across 21 states in the country, to Rs 260 crore. “The infusion we have got so far is one of the most significant investments received by any microfinance institution during such difficult times in the industry,” Vivek Tiwari, MD, CEO & CIO, Satya MicroCapital told Financial Express Online.
The company currently has over 170 branches catering to people who seek credit help for their income generation and income growth purpose in sectors such as agriculture, animal husbandry, business/trade, production/services, and water sanitation purposes. Satya Microcapital is addressing the financial inclusion opportunity “emblematic approach to traditional microfinance by directing extensive emphasis on leveraging technology to improvise the customer experience along with reducing operational costs,” the company said announcing the fundraising on Wednesday.
“Self-employed women residing in rural & sub-urban hinterlands constitute our clientele. COVID-19 has induced a compelling threat to their livelihoods. We will be utilising this funding to render essential credit services to women micro-entrepreneurs for their livelihood reformation via our extensive operational network,” said Tiwari. “Vivek has led the company with his leadership-in-crisis mode. Despite the lockdown and the team working-from-home, Satya has shown amazing conviction to its mission to be at the paramount whenever the nation’s deprived need assistance,” said Sanjay Gandhi –Founder and Chief Investment Officer, Gojo & Company. The impact investment firm is a holding company of MFIs globally that looks to offer financial access to people in developing countries.
The microfinance market in India saw 31 per cent growth in FY20, a report by microfinance industry body Sa-Dhan had said in November last year. The industry registered loan portfolio outstanding of Rs 2,36,427 crore as of March 31, 2020, based on the data from 252 lenders such as NBFCs, SFBs, banks MFIs, and not-for-profit MFIs.