[Funding alert] SATYA MicroCapital raises Rs 135 Cr from responsAbility Investments, Blue Orchard

The NBFC will use the debt funds to back the liquidity needs of small and micro entrepreneurs and individual clients, helping their businesses recover from operational crises induced by COVID-19.
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Delhi-based SATYA MicroCapital Ltd, an RBI registered NBFC-MFI that caters to underbanked population and micro-enterprises, on Wednesday said it raised about Rs 135 crore through Non-Convertible Debentures (NCDs) from impact investment fund manager responsAbility Investments and Swiss impact investor, BlueOrchard Finance Limited.

About Rs 55 crore funds managed by Blue Orchard was disbursed in June and July 2021, and the remaining Rs 80 crore was made available recently by responsAbility Investments, SATYA MicroCapital said.

According to an official statement, the NBFC will use the debt funds to back the liquidity needs of small and micro entrepreneurs and individual clients, helping their businesses recover from operational crises induced by the COVID-19 pandemic.

This will not only act as a catalyst in the socio-economic upliftment of the MSME sector but will also help in the much-needed economic revival of the country.

“SATYA has raised long term foreign debts from Blue Orchard and responsAbility Investments amounting to about Rs 135 crore that will boost our plans of reaching a wider section of micro-entrepreneurs. This is a testament to the belief that our both esteemed debt investors have instilled in SATYA and its operational model,” said Sanjay Goel, Head – Finance, SATYA MicroCapital Ltd. 

The NBFC-MFI offers collateral-free credit to micro-enterprises based on strong credit assessment and a centralised approval system. The company has adopted a unique Limited Liability Group (LLG) Model for extending loans and ensuring repayment.

Its group lending model allows groups of borrowers to share the liability and responsibility to repay loans while helping them build a strong credit profile to avail finance from traditional financial institutions.

Edited by Suman Singh

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