Northern Arc Capital (formerly IFMR Capital), a leading debt capital platform for MFIs and NBFCs, has raised Rs 910 crore (around $130 million) from IIFL Special Opportunities Fund and its series managed by IIFL Asset Management, Standard Chartered Private Equity (SCPE) and Affirma Capital, a newly formed, independent private equity firm to be managed by the team at SCPE. With this round of funding, the total equity raised by Northern Arc stands at Rs 1,400 crore ($ 200 million). As part of this transaction, early investors Dvara Trust, LeapFrog Investments and Accion will partially sell their stake in the company, but will however continue to stay significantly invested and remain bullish on the business. Kshama Fernandes, MD & CEO, Northern Arc Capital, said, \u201cThis is a significant milestone for Northern Arc and testament to the confidence placed by investors in the company. The capital will allow us to significantly scale-up the existing business and pursue new opportunities.\u201d He added: \u201cWe will continue to invest in product development and technology, building on our knowledge, geographical reach, field insights, data-analytics and risk-modelling. We are pleased to have IIFL and Affirma join us in the mission of making access to finance a reality for millions of individuals, low-income households and small enterprises in India.\u201d Following this investment, Amit Mehta, principal, IIFL Private Equity, will join the board of the company. Axis Capital, Credit Suisse and ICICI Securities acted as advisors to the transaction. Northern Arc had been playing a pivotal role in creating access to capital markets for its clients basis their deep understanding of underlying sectors and businesses, and their ability to distinguish between real and perceived risk. The fresh round of investment will help the company address the debt needs of a growing client base across sectors, including new-age financial institutions in sectors such as consumer finance and fintech, the company said in a statement.