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HomeInsightFunding Alert Satya MicroCapital raises $15 mn in funding

[Funding alert] Satya MicroCapital raises $15 mn in funding

Microfinance lender Satya MicroCapital (Satya)

Microfinance lender Satya MicroCapital (Satya), has raised  $15 million (around Rs 117 crore) in its fresh funding round from its existing Japan based investor-Gojo& Company Inc.

According to the company’s statement, the total amount of financial assistance is $8 million being allocated for debt and $7 million for equity.

The company plans to use the funds to expand its geographic footprint and product portfolio.

Read also – [Funding alert] Annapurna Finance raises $15 mn from Proparco

The New Delhi-based Satya MicroCapital was founded in 2017 by Vivek Tiwari, It is addressing the financial inclusion opportunity symbolic approach to traditional microfinance by placing a broader emphasis on leveraging technology to reduce operating costs as well as improve customer experience.

“We are certain that these funds will enable SATYA to accomplish its vision of reaching 50 lakh households by the year 2025. This will also propel SATYA to consistently grow and empower more entrepreneurs from the underserved sections of society”, said, Vivek Tiwari, MD, CIO & CEO of Satya MicroCapital.

“The pandemic has posed an inevitable threat to livelihoods of self-employed women in rural boundaries who majorly constitute our client base. We will be channelising this funding to provide essential and affordable credit services to women micro-entrepreneurs for the revival of their livelihood and businesses via our extensive operational network,” he added.

Presently the company claims to have 350+ branches in over 35,000 villages in over 225 districts across 21 states. It caters to over nine lakh customers for income generation and growth in sectors such as agriculture, animal husbandry, business/trade, production/services, and water sanitation purposes.

Read also – [Funding alert] Decimal Point Analytics raises $4.7 mn in funding

The company said that it works for the upliftment of rural sections by promoting financial independence and providing suitable resources in terms of manpower, operational area, customer outreach and credit products.

Earlier this year, it had raised Rs 42 crore (around $5.65 million) in fresh funding round in the form of non-convertible debentures (NCDs) from funds managed by responsAbility Investments AG.

About Satya MicroCapital

SATYA began its microfinance operations in January 2017. The company utilized demonetization as an opportunity to rework on the business strategy through cashless transactions.

SATYA is an institution built with a vision of change, transformation and is a differentiator in financial inclusion space and its approach is well recognized by industry experts and professionals across different sectors. It is committed to being a socially responsible organization with a focus on Health, Education, Financial Literacy, Nasha-Mukt Samaaj, Gender Equality, and Swachh Bharat. The Company is spreading social awareness messages in its area of operations. Satya MicroCapital Limited primarily caters to women who own businesses and are looking for means of expansion. The group lending model allows groups of borrowers to share the liability and responsibility to repay loans while helping them build a strong credit profile to avail finance from traditional financial institutions.

Read also – [Funding alert] Fundamental VC launches maiden fund of $130 mn

SATYA has adopted a unique Limited Liability Group (LLG) Model for extending loans and ensuring repayment. The company’s LLG model distributes the liability among each group member which exists only up to 10% of Loan Tenure in bi-weekly collections.

Through the model, the company aims to add a social touch to lending by integrating modern technology into the Micro Finance industry. Currently, SATYA has established 150 branches in 131 districts in 22 states (Assam, Bihar, Chandigarh, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Meghalaya, Odisha, Pondicherry, Punjab, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand and West Bengal).

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