[Funding alert] SATYA MicroCapital raises Rs 72.5 Cr from BlueOrchard Finance

New Delhi-based microfinance startup Satya MicroCapital Limited has announced that it has raised Rs 72.5 crore led by Swiss impact investor, BlueOrchard Finance Limited, for the second time since its inception in 2017.

According to a release by the company, the funding will be received through InsuResilience Investment Fund (IIF) and Japan ASEAN Women Empowerment Fund (JAWEF), which is managed by BlueOrchard.

The company said the debt funding will instil a boost in scaling up its operational base while continuing to develop innovative credit offerings and complete end-to-end business processes for its valuable clients.

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SATYA MicroCapital, an NBFC-MFI, offers collateral-free credit to micro enterprises on the basis of a credit assessment platform and a centralised approval system. The company said it has adopted a unique Limited Liability Group (LLG) model for extending loans and ensuring repayment. The model distributes the liability among each group member, which exists only up to 10 installments in bi-weekly collections.

Till date, SATYA claims to have rendered its value-added credit services for generating means of livelihood to over 4.5 lakh clients across 15,000+ villages across the country.

Vivek Tiwari, MD and CEO, SATYA MicroCapital Limited, said,

"The funds will be used for effectively promoting animal husbandry bundled with livestock insurance and in helping a wider section of small aspiring women entrepreneurs to normalise their business. We are thankful to BlueOrchard Finance for showing trust and confidence in SATYA. This will definitely boost the microfinance activities in India.”

The company was also backed by an equity funding of Rs 105 crore in May 2020 led by Japan-based finance institution Gojo & Company Inc. 

Earlier, in September 2019, SATYA MicroCapital raised Rs 50 crore in debt funding by issuing non-convertible debentures (NCDs) to Mauritius-based Aviator Global Investment Fund, in a joint venture with Northern Arc Capital, for three years.

It launched its micro-finance operations from its Bulandshahr branch in Uttar Pradesh. Since then, it has set up 65 branches across 11 states - Assam, Bihar, Chhattisgarh, Haryana, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, and West Bengal.