Two microfinance firms raised Rs 170 crore during lockdown: MFIN

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Microfinance Institution Network (MFIN) on Monday said two companies have raised a total of Rs 170 crore during the COVID-19 pandemic, reflecting confidence in the sector. The sector continues to attract long-term private equity capital from the global investment firms as is evident from the combined equity capital infusion of Rs 170 crore in two microfinance entities during the lockdown phase, RBI recognised self-regulatory organisation MFIN said in a release.

The sector, which has been categorised an essential service, has gradually opened up since April 20 and is looking at being the provider of credit that is required to rebuild the livelihoods of its clients.

Against this backdrop, two MFIN members, Delhi-based Satya MicroCapital and Uttar Pradesh-based Sindhuja Microcredit have raised Rs 105 crore and Rs 65 crore, respectively, the umbrella body for microfinance industry said.

Japan-based Gojo & Company funded Satya MicroCapital, and Norway-based Nordic Microfinance Initiative (NMI) and Carpediem Capital invested in Sindhuja Microcredit.

“This clearly shows the confidence that equity investors have on Indian microfinance sector, its capacity to bounce back and manage its portfolio qualities even during demonetisation, Andhra crisis etc, making it a safe and viable impact investment. Both investments came in the last few days, showing the resilience of the sector,” MFIN CEO Harsh Shrivastava said.

He exudedd confidence that the RBI and government-led liquidity infusion measures will help the sector in supporting employment generation and livelihood rehabilitation across the country.

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