On Wednesday, microfinance institution SATYA MicroCapital Ltd announced that it has raised funding of $21 million from Gojo & Company Inc. is one of the biggest fundraisings by a microfinance firm amid pandemic. Gojo & Company had previously supported Satya in May 2020 with Rs 105 crore round.
SATYA Microcapital operated since 2016 is an RBI registered NBFC-MFI and has disbursed more micro-loans to over 4.5 independent micro-entrepreneurs across 21 states through 170 branches. The company currently has more than 170 branches catering to individuals who search for credit score in sectors reminiscent of agriculture, animal husbandry, enterprise/commerce, manufacturing/providers, and water sanitation functions to assist with its revenue technology and revenue development goal.
The company stated that it has adopted a unique Limited Liability Group (LLG) model for both lending and repayment. The model allocates responsibility between each member of the group, which only exists up to 10 instalments in the bi-weekly collections.
Vivek Tiwari, MD at Satya MicroCapital said, “Receiving fresh capital validates the MFI business model. This will bring investors’ confidence back in the sector.” He further added the next target is to achieve Rs 2,500 crore loan assets by March 2022. “We have opened almost 85 branches in the last two years, so the main growth will come from these branches as more than 50% of the branches are underutilised.”