[India], June 13 (ANI): Satya MicroCapital Limited, a domestic microfinance company, raised funds in the form of share capital worth Rs. 11, 47, 95,000, from its existing investors through a rights issue of new shares.
The non-banking finance company (NBFC) plans to utilise the latest capital infusion towards expanding its presence and building its portfolio of assets under management in both its existing, as well as new geographies.
The Delhi-based company serves low-income entrepreneurs in India's rural and urban areas. It provides prompt, convenient, and affordable collateral-free credit to people at the bottom of the pyramid through a strong credit assessment and centralised approval system.
The company started its microfinance operations by adopting the Joint Liability Group (JLG) Model with the use of technology and new adaptations. The firm's JLG lending operation 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.
"We want to not only expand our overall loan book, but are also focusing on building a stronger capital base that will help us extend our reach and serve more customers by offering them finance options for their livelihood and entrepreneurial undertakings. Having covered major rural areas in seven states, we now plan to venture into the less financially penetrated states and take our offerings to the country's masses. The capital raised will, therefore, help us scale up both our technology and operations in the near future and effectively fulfill our growth objectives," a company spokesperson said.
Since its inception in October 2016, Satya MicroCapital Limited has disbursed loans worth Rs. 277.48 crore across seven states.
The company aims to serve as a catalyst for the socioeconomic upliftment of five million households by 2025. (ANI)