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Delhi-based Satya MicroCapital Limited, a micro-finance firm focused on underbanked population and micro-enterprises, recently raised fresh funding worth $15 million led by existing Japan-based investor Gojo and Company Inc. Of the total capital raised, debt raise constituted $8 million, while $7 million was allocated to equity. 

SATYA said it plans to use these funds to expand its terrestrial footprint and magnify its diverse product portfolio. This is for the first time SATYA has received debt funding from Gojo amd Company Inc.

Vivek Tiwari, MD, CIO and CEO, SATYA MicroCapital Ltd, said, 

“We are certain that these funds will enable SATYA to accomplish its vision of reaching 50 lakh households by the year 2025. This will also propel SATYA to consistently grow and empower more entrepreneurs from the underserved sections of society.”

“The pandemic has posed an inevitable threat to livelihoods of self-employed women in rural boundaries who majorly constitute our client base. We will be channelising this funding to provide essential and affordable credit services to women micro-entrepreneurs for the revival of their livelihood and businesses via our extensive operational network,” he added.

Headquartered in Delhi, the RBI-registered NBFC-MFI raised about Rs 135 crore last year through Non-Convertible Debentures (NCDs) from impact investment fund manager responsAbility Investments and Swiss impact investor, BlueOrchard Finance Limited.

SATYA currently claims to have 350+ branches in more than 35,000 villages of over 225 districts in 21 states, catering to more than nine lakh clients for income generation and growth in sectors such as agriculture, animal husbandry, business/trade, production/services, and water sanitation purposes.

It said it works to uplift the rural sections by promoting financial independence and providing the appropriate resources in terms of manpower, operational area, client outreach, and credit products.

It does this by offering 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.