Microfinance Institution, Sonata Finance Raises INR 35 crore
SONATA Finance Pvt. Ltd., an Allahabad based NBFC Microfinance Institution, promoted by Anup Kumar Singh, announced that it has closed its Series D equity raise of Rs.35 crore, led by Creation Investments, a leading global investment fund. The Michael & Susan Dell Foundation and Swaminathan Aiyar, two existing investors in the company and Anup Kumar Singh, the promoter, have also invested in this round.
Unitus Capital was the exclusive financial advisor and arranger to Sonata and its shareholders for the transaction. SONATA Finance Pvt. Ltd. is one of the few MFIs that has an exclusive focus on the Northern states of India – is one of the most impoverished regions of the country and one which has limited access to credit.
Speaking about this transaction, Anup Kumar Singh, Promoter and Managing Director of Sonata said, “We started SONATA with a single minded mission to ensure access to credit to poor in the Northern states of India. Over the years, our product and service profile have diversified as we have started to understand our clients better as we continuously provided valued added services to them. We welcome the support of like-minded stakeholders like Creation Investments which has endorsed our efforts to ensure quality services to the BoP population and has committed to provide their guidance to help us become one of the leading MFIs in India.”
Ken Vander Weele, Chief Investment Officer – Creation Investments said, “Despite the turmoil in the microfinance industry in India for the past couple of years, we have remained positive on the sector. SONATA is one of the few MFIs that has consistently delivered on its promise to provide quality credit services profitably in one of the most difficult geographies in India. This is due to its exceptional management, dedicated staff and commitment to excellence. This is our first MFI investment in India and we are excited to partner with Sonata for its growth. We are long-term partners who will provide them with all necessary support to achieve their mission.”
Geeta Goel, Director – Microfinance, The Michael & Susan Dell Foundation said, “We are impressed with the way SONATA has performed over the last two difficult years in terms of ensuring both social and financial returns. Despite the crisis, we have remained committed to the sector and continue to support investees that have retained their focus on being client centric, transparent and financially viable”
Abhijit Ray, Co-Founder and Director of Unitus Capital added, “This transaction validates the fact that there is strong interest in Indian microfinance sector. SONATA’s equity successful raise is an evidence of its unique geographical focus, profitable operations, supportive investors, visionary board, experienced management team, committed promoter, and focused customer service. Unitus Capital is proud to be associated with this transaction and we remain committed to ensure access to capital to the sector.”