Indian microfinance company Satin Creditcare Network Ltd has announced raising $30 million from Dutch development bank FMO (Netherlands Development Finance Company) by issuing non-convertible debentures.
The capital infusion will help Satin Creditcare expand its lending portfolio and operations, according to an official statement. Currently, the firm has 1,066 branches across 20 states and union territories serving over 3 million clients.
“With the new capital pool at our disposal, we will be looking at strengthening our ongoing credit lending services to a larger section of our existing and potential customer base,” said HP Singh, chairman and managing director, Satin Creditcare.
The company claims that on a consolidated basis, Satin Creditcare’s assets under management stood at Rs 6,191.4 crore as on September-end.
“Supporting women is an important part of FMO’s strategic vision. We strongly feel that Satin is an ideal partner in taking forward this vision as it has a strong focus on providing microfinance to the underserved communities, especially economically active women in rural and urban areas. We are sure this collaboration will help us make significant contributions to promoting gender equality and job creation in India,” said Huib-Jan de Ruijter, Director of Financial Institutions at FMO.
FMO is focused on supporting sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.
Satin Creditcare offers its clients a variety of loans under the microfinance segment. It has a business correspondence partnership with IndusInd Bank.
It also offers a bouquet of financial products in the non-MFI segment comprising loans to MSMEs and business correspondent services to other financial Institutions through its wholly owned subsidiary, Taraashna Services Limited.
In November 2017, another Satin Creditcare subsidiary, Satin Housing Finance, received its housing bank licence. It launched operations in February 2018.
In October last year, the Delhi-based microfinance lender raised Rs 150 crore through a qualified institutional placement (QIP). In August 2017, it raised around Rs 35 crore ($5.5 million) from non-banking financial company Capital First Ltd, while in March that year, the company raised $10 million (around Rs 65.8 crore) from Asian Development Bank (ADB) through a preferential allotment.