New investor Gojo Company, Inc., a Japan-based firm that holds stakes in microlenders have invested Rs 43 crore ($6.27 million) in equity funding in Women-oriented Satya MicroCapital Ltd, said a press statement released on Monday. Gojo acquired 25% stake in the microlender through this deal.
Existing social-impact investor Dia Vikas Capital Pvt. Ltd also participated in the round, said New Delhi-based Satya MicroCapital.
The lender will deploy the funds to expand its presence across its already established markets as well as foray into new geographies and diversify its loan book.
Established in January 2017, Satya MicroCapital, gives loans to small entrepreneurs in both rural and urban areas. Its Joint Liability Group model mainly focuses on women, with their husbands acting as co-borrowers. A Joint Liability Group typically comprises of 5-10 individuals jointly seeking a loan.
Satya MicroCapital has 55 branches across 55 districts in 11 states Assam, Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and West Bengal. It had a loan book of Rs 275 crore as on 31 July 2018, the statement said.
Vivek Tiwari, managing director and chief executive of Satya MicroCapital, was earlier chief operating officer at microlender Satin Creditcare Network Ltd.
For the funding round, Mumbai-based advisory firm for private equity investments, Vidura Capital, acted as Satya MicroCapitals consultant.