SATYA MicroCapital raises Rs 135 crore through non-convertible debentures, BFSI News, ET BFSI

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Delhi-based SATYA MicroCapital, an RBI registered NBFC-MFI that provides credit access to the underbanked population and micro enterprises, has raised Rs 135 crore through non-convertible debentures (NCDs) from impact investment fund manager responsAbility Investments and Swiss impact investor BlueOrchard Finance.

Blue Orchard invested Rs 55 crore in June and July while Rs 80 crore came from responsAbility Investments recently, SATYA MicroCapital said. The NBFC will utilise the funds to lend to micro and small firms and individuals to help their businesses recover from the pandemic.

Vivek Tiwari, MD, CIO & CEO, SATYA MicroCapital, said, “The pandemic has negatively impacted the small and micro entrepreneurs across the entire nation. Without adequate financial support, it’s a very challenging task for them to come out of pandemic induced roadblocks. Post surpassing the second wave of Covid-19, the immediate requirement is to salvage the businesses and assist them in returning to normalcy. The unbanked population will look to the microfinance sector to help them resume their normal lives.”

He said, “With the help of this funding, SATYA will be able to meet the immediate liquidity demand of businesses which will not only bring their businesses back to life but will also prepare them for a brighter future.” SATYA aims to provide financial assistance to five million households by 2025.

Sanjay Goel, Head – Finance, SATYA MicroCapital Ltd, said, “This is a testament of the belief that our both esteemed debt investors have instilled in SATYA and its operational model.”



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Satya MicroCapital raises ₹135 crore from BlueOrchard and responsAbility Investments

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Satya MicroCapital Ltd, a Delhi-based NBFC-MFI, has raised about ₹135 crore through Non-Convertible Debentures (NCDs) from impact investment fund manager responsAbility Investments and Swiss impact investor, BlueOrchard Finance Limited.

This will enable Satya to achieve its vision of providing financial assistance to 5 million households by the year 2025 with an exponential speed,” Vivek Tiwari, MD, CIO & CEO, Satya MicroCapital Ltd, said in a statement.

About ₹55 crore funds managed by Blue Orchard was disbursed in June and July and the remaining ₹80 crore was made available by responsAbility Investments, the company statement said. This will not only act as a catalyst in socioeconomic upliftment of the MSME sector but will also help in the much-needed economy revival of the country, it added.

LLG Model

This 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. The 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.

Through the model, the company aims to add a social touch to lending by integrating modern technology into the micro finance industry. Satya primarily caters to women who own businesses or are looking for business expansion.

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