Satya MicroCapital is a startup with the focus on lending to micro, small and medium enterprises (MSMEs) and has added women entrepreneurs for target-lending. Satya MicroCapital has now raised funds to the tune of Rs 34 crore and the investment has come from BlueOrchard Finance Limited, a Swiss company.
BlueOrchard has, within its portfolio, Microfinance Initiative for Asia (MIFA) and Japan ASEAN Women Empowerment Fund (JAWEF). These vehicles have been used to fund this amount to Satya MicroCapital in this round. These are path-breaking initiatives launched with the sole objective of coming to the assistance of the smallest firms in the business ecosystem in developing economies and with an emphasis on women entrepreneurs, including the ones that operate in groups.
As their names suggest these funds are also meant for the Asian continent rather than having a global perspective and these initiatives have the backing of the United Nations.
“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 institution in the country. Having 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. Most importantly, the funds raised will enable us to build a stronger capital base and reach more entrepreneurs by offering them finance options for their livelihood and entrepreneurial undertakings. The capital raised will also help us scale up rapidly and develop innovative offerings for a wider segment of customers,” Vivek Tiwari, MD & CEO, Satya MicroCapital Limited said in a statement.
Satya MicroCapital, with its headquarters in New Delhi, has branches across 11 states in India operating through 65 branches. The company has a NBFC licence and is recognized as a Micro Finance Institution (MFI). Its unique model of Limited Liability Group lending has found many takers.
When a small group of entrepreneurs, especially women, approach the startup for micro loans, Satya MicroCapital offers them the funds with the individuals in the group being identified as separate borrowers and the liability fixed on them. The loans are generally repaid in bi-weekly instalments and the number of instalments stands fixed at 10. This ensures better compliance and the company’s overall track record has been impressive and based on that only the current funding is taking place. It uses the latest technologies in its process of evaluating and sanctioning micro loans.
With this new fund raised from BlueOrchard, Satya MicroCapital hopes to be in a better position to offer its loan products to a wider section of the business operators and to expand geographically as well.