Satya MicroCapital raises $60 million from Japan's Sumitomo Mitsui Banking Corporation
Satya MicroCapital has announced raising $60 million from Japan's Sumitomo Mitsui Banking Corporation Saturday close on the heels of its mobilising another $20 million from the French Development Agency’s private sector financing arm Proparco.
The funding will help the New Delhi-based micro loan provider to expand its portfolio. Satya has assets under management of nearly Rs 5000 crore.
The fund is raised at around 11% rate, an official with the micro lender said.
The lender has its average cost of funds at 12%.
Established in October 2016, the lender has built a network of over 500 branches across 25 states.
The microfinance sector grew steadily at around 25% compounded annual growth rate between FY21 and FY23 overcoming the pandemic led stress. The NBFC-MFIs group raised their market share to 39.7%, highest in all categories of microfinance lenders.
Acuite Ratings and Research expects the sector to grow to Rs 4 lakh crore by March 2024 from around Rs 3.50 lakh at the end of March this year.
