Satya MicroCapital, a New Delhi, India-based microlender, has raised $4.7m from Swiss impact investment manager BlueOrchard Finance.
The company the funding has been raised equally from two BlueOrchard managed funds — the Microfinance Initiative for Asia (MIFA), a microfinance initiative to exclusively target Asian microfinance institutions, and the Japan ASEAN Women Empowerment Fund (JAWEF).
Vivek Tiwari, MD & CEO of Satya said: “The funds raised will enable us to build a stronger capital base and reach more entrepreneurs by offering them finance options for their livelihood and entrepreneurial undertakings. The capital raised will also help us scale up rapidly and develop innovative offerings for a wider segment of customers.”
By leveraging technology innovatively and making modifications to its lending model, Satya MicroCapital offers prompt, convenient, and affordable collateral-free credit to people at the bottom of the economic pyramid with a strong credit assessment system. Its limited liability group (LLG) model, mainly focuses on women, with their husbands acting as co-borrowers, through a credit product that allows them to start a new business or build their existing business.
The company has 65 branches in 11 states, including Bihar, Chhattisgarh, Haryana, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and Assam.
Last month, Satya raised $6.2m in a round of funding led by Japan’s Gojo & Company, along with existing investor Dia Vikas Capital.
India-based P2P lending platform Finzy recently raised an additional $1m to its pre-Series A round, bringing its total to $2.3m, while POS lending platform ZestMoney reportedly raised $13.4m in a new investment round.
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