Satya MicroCapital disburses Rs 680 crore in loans to 2 lakh micro enterprises

By: | Updated: February 7, 2019 6:02 PM

Microfinance startup Satya MicroCapital has disbursed Rs 680 crores in loans to 2 lakh entrepreneurs and micro businesses in India in less than three years of launch.

Disbursed amount for the month of January 2019 was approximately Rs 67 crores.

Microfinance startup Satya MicroCapital has disbursed Rs 680 crores in loans to 2 lakh entrepreneurs and micro businesses in India in less than three years of launch.

“Disbursed amount for the month of January 2019 was approximately Rs 67 crores on an annual interest rate is of 24-25%,” Satya MicroCapital’s MD and CEO Vivek Tiwari told FE Online in an email response.

Satya MicroCapital, launched in October 2016, is an RBI-registered NBFC-MFI that focuses on low-income businesses. The company has 81 branches across 14 states.

“From reaching 1,000 entrepreneurs in our first 100 days, Satya has now successfully made a giant leap by offering loans to 2 lakh entrepreneurs,” Tiwari said.

Almost entire client portfolio of Satya MicroCapital consists of women entrepreneurs. The company said that it would continue to support people at the bottom of the social ladder, particularly women looking to start or grow their ventures.

“…only 2-3% of our clients are not females,” said Tiwari.

He further said that animal husbandry, clothing shops, beauty parlors, cosmetics shops, general or grocery stores are the top areas of businesses for which loans are raised through its platform.

Satya MicroCapital is looking to expand to other states, particularly in South India by end of 2018 and reach out to 5 million households by 2025.

The company raised Rs 42.8 crores from Tokyo-based Gojo & Company, Inc. and Gurugram-based Dia Vikal Capital.

Satya MicroCapital follows a unique Joint Liability Group (JLG) model to offer collateral-free loans to women, with their husbands acting as co-borrowers.

Dia Vikas Capital is a subsidiary of Opportunity International Australia. It was set up in 2008 as a social investor to help grow microfinance firms in India.

Satya MicroCapital has so far raised Rs 1.3 billion over four rounds of funding.

Gojo & Company is a holding company of microfinance institutions in countries including Sri Lanka, Cambodia, and, Myanmar.

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