Satya MicroCapital, a Delhi-based women-focused company has reportedly secured funds amounting to Rs 43 crore ($6.27 million) in an equity funding. The particular round was led by new investor Gojo & Company, Inc.
Gojo & Company is based in Japan and holds stakes in microlenders. Dia Vikas Capital Pvt. Ltd, the existing social impact investor of the company also participated in the funding round.
The company is planning to utilize these funds in the expansion of its existence across its existing locations, and also enter into new geographies and diversify its loan book.
With this round, Gojo has taken over 25% stake in the microlender, with the Mumbai-based advisory firm for private equity investments, Vidura Capital, acting as a consultant.
Launched in 2017, Satya MicroCapital offers loans to small entrepreneurs in both rural and urban areas. Its Joint Liability Group model mainly pays attention to women, with their husbands as co-borrowers.
Talking about its presence, the company has 55 branches across 55 districts in 11 states that include Assam, Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and West Bengal.
Last year, Dia Vikas Capital provided Rs 16 crore ($2.4 million) for around 25% stake in Satya MicroCapital. After this Satya MicroCapital raised Rs 11.48 crore ($1.7 million) from existing investors through a rights issue in June 2018.
The microfinance industry in India has attracted a considerable sum of money from private equity, venture capital and social-impact firms. The industry is now thriving as growth in its total loan portfolio accelerated last year.