Sindhuja Microcredit, a new generation digital and rural focused Micro Finance Institution (MFI) providing financial services to the bottom of the pyramid self-employed women entrepreneurs, has declared a Series B round of capital raise of USD 8.7 million from Norway-based Nordic Microfinance Initiative (NMI) and Carpediem Capital, subject to receipt of relevant regulatory approvals. It had closed its Series A round USD 4 million from Carpediem Capital earlier in March 2019.
Vidura Capital acted as the Exclusive Financial Advisor for the transaction. Vertices Partners acted as the Legal Counsel for Sindhuja Microcredit & Antares Legal for the investors, for the transaction.
Sindhuja, in its two years of operations, has provided microloans to over 84,000 self-employed women micro-entrepreneurs across 5 states in the Northern part of the country. The Company currently operates 56 branches with over INR 1.7 billion in Assets under Management (AUM). 100% of its branches are located in rural and remote rural regions.
NMI is a well reputed international impact investor, which invests in MFIs across Africa and Asia, strictly focusing on double bottom line investments, where both financial and social goals are met. NMI is a public-private partnership, owned by the Norwegian and Danish governmental funds for developing countries and large private sector institutions. Through 11 years of operation, NMI manages funds of over 250 million USD.
Welcoming the investment, the Promoters, Abhisheka Kumar & Malkit Didyala, mentioned “NMI is a well-known international impact investor and it is a matter of pride for us to have their backing. We are also humbled with the continued confidence shown by Carpediem Capital, our existing investor. Our customers, self-employed rural women, are the most vulnerable in the COVID – 19 worlds with their livelihoods under direct threat, this funding will be used to scale our operations and provide much needed financing to these women micro-entrepreneurs.”
Commenting on their investment, Arthur Sletteberg, Managing Director, NMI said “At NMI, we firmly believe in the inherent potential of financial inclusion of poor and rural households in India and we are committed to supporting entrepreneurs who share this endeavor. Sindhuja is a young and growing MFI, backed by Promoters who have profound understanding of the sector and its operations. The Company is well-poised to tap on the market potential and we are very happy to support them at this crucial growth stage, amidst the prevailing global pandemic crisis.”
Commenting on the development, Abhishek Sharman, MD, Carpediem Capital said “We welcome NMI on board and look forward to working with them and the company to build a scaled-up platform providing financial inclusion for women entrepreneurs in rural India.”