“The capital will help the company meet its goal of reaching 1 million customers by the end of this year,” said Rakesh Dubey, CEO, SVCL.
SVCl, which began operations in 2010 with branches in Uttar Pradesh, Madhya Pradesh and Rajasthan, has now expanded to Bihar, Haryana, Chhattisgarh, Uttarakhand and Punjab. The company is registered as a non-banking financial company (NBFC) under Reserve Bank of India.
SVCL claims to help its users in their income generation activities through financial intermediation. It targets to provide financial assistance to two million households by 2020 across the country. It is promoted by Vans Pte Ltd, an investment company focused on financial services, healthcare, building materials and technology sectors, and SV Corporation Pvt Ltd.
“This fund will enable company to fetch at least Rs 120 crore more business. The fund has come very timely after demonetization and we are planning to use the fund in states with poor economic conditions such as Madhya Pradesh, Chhattisgarh and Uttar Pradesh,” said Durgeshwar Mishra, CFO, SVCL.
In 2015, SVCL had raised $8 million from impact investment manager Blue Orchard through non-convertible debentures.
BSE-listed Capital First Ltd (formerly known as a Future Capital Holdings Ltd) provides debt financing to micro, small and medium enterprises (MSMEs) and Indian consumers. Recently, it acquired a 10 per cent stake in Sienna Systems Resources Pvt Ltd. Founded in 2005, Capital First is backed by Warburg Pincus which is looking to sell a 10 per cent stake in the company.
In the MFI sector last month, Arohan Financial Services Pvt Ltd, part of Aavishkaar-Intellecap Group, raised Rs 155.5 crores ($24 million) to fund its expansion plans. Around the same time, Myanmar Finance International Limited (MFIL), a micro finance joint venture of AIM-listed Myanmar Investments International (MIL), raised an additional local currency denominated $1 million debt facility from Malaysia’s Maybank.