Exclusive: Microfinance lender SV Creditline raises $3m debt from Capital First

Pic credit: SVCL

Gurgaon-based micro finance institution (MFI) SV Creditline Ltd (SVCL) has raised Rs 20 crore ($3.1 million) in debt from Capital First, a company spokesperson told DEALSTREETASIA.

“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.

Also Read: India: MFI Arohan raises $24m from Maj Invest, existing backers

MFI Myanmar Finance raises $1m debt from Maybank

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.