Delhi based microfinance institution Satin Creditcare Network Limited raises $7.6 million in new funding
Satin Creditcare Network Limited (“SCNL”), a microfinance institution headquartered in Delhi has announced the successful completion of its round of funding to the tune of USD 7.6 million. The funding has been raised from MicroVest II, LP, ShoreCap II Limited (managed by Equator Capital Partners LLC) and Danish Microfinance Partners K/S (“DMP”). MicroVest has simultaneously purchased all equity shares from Lok Capital LLC, marking Lok’s complete exit from SCNL where it has been an early stage investor since 2008. Unitus Capital was the sole financial advisor to the transaction.The exit of Lok Capital is the first complete exit of this scale in the Indian micro finance sector and underlines the buoyancy and growth potential of the sector despite having gone through testing times recently. SCNL has been one of the fastest growing MFIs in India growing its portfolio to ~Rs. 575 crores (as on 31 March 2013) from Rs. 319 crores (as on 31 Mach 2012) – representing a growth of 80% for the year. Satin has strong banking relationships with a diversified and expanding lender base of 35 institutions currently, including 11 public sector banks, 11 private sector banks, 3 foreign banks and 10 domestic & foreign institutional lenders.
In the current financial year ending 31 March 2013, Satin mobilized Rs. 709 crores through debt funding and securitization transactions and was successfully able to diversify funding sources over the year through increasing reliance on non-convertible debentures (NCDs) and securitization of portfolio. Earlier in the year, SCNL raised Rs. 50 crores through long term NCDs from Blue Orchard Microfinance Investments and responsability Investments and is also exploring raising Tier 2 capital through sub debt as a further diversification to its funding sources.
Mr. HP Singh, Chairman cum Managing Director, SCNL said, “We are pleased to welcome MicroVest as a long term partner to Satin and also excited by the continued confidence expressed by our existing investors ShoreCap II & DMP.” The newly infused equity will provide SCNL with the impetus needed to grow in the rural areas in North India and impact close to 150,000 additional lives in these areas.
Website: Satin Creditcare Network