Financial services firm Northern Arc bags $80M funding from World Bank’s IFC
The fresh capital will support Northern Arc's expansion to reach end customers, aiming to improve credit access to customers across its focused sectors.
Non-banking financial company (NBFC) Northern Arc has secured $80 million in funding from the International Finance Corporation (IFC), a member of the World Bank Group, in equal halves of debt and equity components.
The capital infusion will support the expansion of Northern Arc’s reach to end customers, fostering social impact through improved credit access to customers across its focused sectors, the company said in a statement on Wednesday.
As of September 30, 2023, Nort hern Arc has facilitated the financing of over Rs 1.5 lakh crore in credit through its technology platform spread across 682 districts in 28 states and seven union territories in India, according to the statement.
Through its multi-channel approach of lending, placement and fund management, Northern Arc focuses on increasing the supply of credit.
Northern Arc handles assets under management of Rs 10,081 crore. The firm is backed by equity investors including Sumitomo Mitsui Banking Corporation, LeapFrog, 360 ONE (formerly known as IIFL), Accion, Augusta Investments (known as Affirma Capital), Dvara Trust, and Eight Roads (a proprietary arm of Fidelity).
Northern Arc Capital submitted preliminary papers to SEBI for an initial public offering in February. The IPO will consist of fresh equity shares valued at Rs 500 crore and an offer for sale of up to 2.1 crore equity shares by investor shareholders.
Edited by Kanishk Singh