New Delhi based Micro-financing group, Satya MicroCapital raises close to $5 million (Rs. 34 crores) from leading Swiss impact investment manager BlueOrchard Finance Ltd. for on-lending to the Indian micro, small, and medium business sector.
The funding comes equally from two BlueOrchard managed funds, the Microfinance Initiative for Asia (MIFA), which is the first microfinance initiative of its size to exclusively target Asian microfinance institutions, and the Japan ASEAN Women Empowerment Fund (JAWEF), which is the first fund investing with female micro-entrepreneurs in the Southeast Asian frontier and emerging markets.
“Having grown at a considerable rate and expanded our presence across multiple regions in India, we are well on our way to becoming one of the leading microfinance institutions in the country. Having a partnership with developed focused like-minded institution like BlueOrchard Finance Ltd is a strong testament to the market disruption that we are creating through large-scale financial inclusion, as well as our long-term growth potential,” said MD & CEO, Satya MicroCapital, Vivek Tiwari.
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 in order to avail finance from traditional financial institutions.