Microfinance Lender Satya MicroCapital Raises Funds Worth Rs 11.48 Cr Via Rights Issue
New Delhi-based non-banking financial company (NBFC), Satya MicroCapital Ltd, has raised Rs 11.48 crore from its existing investors through a rights issue of new shares. The company has allotted 25.51 lakh shares at Rs 45 each to a total of 107 investors.
Satya MicroCapital plans to utilise the latest capital infusion towards expanding its presence and building its portfolio of assets under management in both its existing, as well as new geographies.
It is serving low-income entrepreneurs in India’s rural and urban areas. The company started its microfinance operations by adopting the Joint Liability Group (JLG) Model with the use of technology and new adaptations. The firm’s JLG lending operation 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.
Spokesperson, Satya MicroCapital Limited, commented, “Having covered major rural areas in seven states, we now plan to venture into the less financially penetrated states and take our offerings to the country’s masses. The capital raised will, therefore, help us scale up both our technology and operations in the near future and effectively fulfil our growth objectives.”
Since its inception in October 2016, Satya MicroCapital has disbursed loans worth Rs 277.48 crore across seven states through a network of 42 branches. The seven states are Bihar, Chhattisgarh, Haryana, Punjab, Rajasthan, Uttar Pradesh, and Uttarakhand.
Earlier this month, another microfinance institution, Annapurna Finance, raised Rs 155 crore ($23 million) from mid-market private equity firm Oman India Joint Investment Fund.
