Northern Arc, a diversified non-banking financial company (NBFC), proudly announces securing an investment of $80m from the International Finance Corporation (IFC), a member of the World Bank Group.
This significant funding is composed of an equal split of equity and debt, with each contributing approximately $40m. This substantial investment underscores IFC’s confidence in Northern Arc’s robust and sustainable business model, alongside the promising expansion of India’s credit market.
Northern Arc operates as a pivotal entity within the Indian financial landscape, facilitating over INR 1.5 trillion in credit through its advanced technological platform. The platform leverages extensive data analytics and domain expertise, significantly impacting India’s financial ecosystem. With a multi-channel strategy that encompasses lending, placement, and fund management, Northern Arc intensifies the availability of credit, particularly focusing on MSME Financing, MFI, Consumer Financing, Vehicle Financing, Affordable Housing Financing, and Agricultural Finance.
The funds from IFC will be strategically used to broaden Northern Arc’s outreach to end customers, thereby amplifying the social impact by enhancing credit access across its targeted sectors.
Northern Arc’s CEO, Ashish Mehrotra, expressed his enthusiasm about the new partnership, “This investment from IFC is a strong endorsement from a large global multilateral to our mission of
enabling credit to the underserved and unserved people in India. The investment marks the beginning
of a long term relationship with IFC and other multi laterals who believe in the India story and Northern
Arc playing an instrumental role in India’s growth story through financial inclusion.”
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