New Delhi-based Satya MicroCapital Raises Rs 43 Cr Led by Gojo & Company
To channelize the capital infusion towards further expansion across the country and building its lending portfolio
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New Delhi-based micro-finance company, Satya MicroCapital has raised Rs 43 crore in funding led by Japan’s Gojo & Company, along with existing investor Dia Vikas Capital Pvt. Ltd. The latest equity raised follows a right issue of Rs 11.5 crore in the month of May 2018. The company plans to use the funds to expand its presence across existing as well as new geographies and build a diversified loan book.
Gojo & Company, Inc. is a Japan-based holding company of microfinance institutions around the world. The company is headquartered in Tokyo and has subsidiary microfinance institutions in various countries such as Cambodia, Sri Lanka, and Myanmar. This is the company’s first investment in an Indian Micro Finance Institution, having earlier invested in Ananya Finance for Inclusive Growth Pvt Ltd, an Ahmedabad based NBFC. Dia Vikas Capital, a subsidiary of Opportunity International Australia, was established in 2008 as a social investor to support the growth of firms in the microfinance space in India. Mumbai-based advisory firm for private equity investments, Vidura Capital, acted as Satya’s exclusive advisor for the deal.
Speaking on the latest funding round, Vivek Tiwari – MD & CEO, Satya MicroCapital, commented, “We take great pleasure in welcoming Gojo on board. Gojo not only holds a deep understanding of the microfinance sector in Asia but also shares our long-term vision of building a high-quality organisation serving people at the bottom of the economic pyramid. Moreover, additional funding by our existing investor Dia Vikas Capital further validates our business model and the growth we have achieved in such a short time. We are certain that the funds raised will enable us to continue growing and empowering more and more Entrepreneurs from the underserved sections of society.”
Sanjay Gandhi – Founder & Chief Investment Officer, Gojo & Company Inc. said, “It gives a great pleasure to partner with a young and dynamic microfinance institution like Satya MicroCapital. Gojo was created to promote financial access across the globe and has already made equity investments in MFIs based in Cambodia, Myanmar and Sri Lanka. So, when it came to a highly competitive market like India, we wanted to invest in an NBFC MFI, which had the potential, as well as the required ability to provide financial access to a large client base in the coming years. & we found that partner in Satya: an enviable growth in its first eighteen months; an efficient and client friendly model created through an appropriate mix of social ideology and technology, and a competent team under the strong leadership of Vivek Tiwari, who leads the team from the front.
I am quite pleased that the equity infusion in this current round will allow Satya to support its robust expansion plans.”
Satya MicroCapital provides loans to small entrepreneurs in both rural and urban areas. Its Limited Liability Group (LLG) model, mainly 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.
Having commenced lending only in January 2017, Satya MicroCapital has already reached Assets Under Management (AUM) of Rs 275 crore as of July 31, 2018. The company began its operations in five states and has now reached 55 branches spread across 11 states i.e. Assam, Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Orissa, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand & West Bengal. The company also recently crossed a milestone of one lakh active loan clients and cumulative credit disbursements worth Rs 300 crore. The microfinance company had previously raised private equity capital of Rs 16 crore from Dia Vikas Capital in October 2017.
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