Japanese microfinance holding firm Gojo and Company recently increased its minority equity holding in New Delhi-based Satya Microcapital with a share purchase in the amount of INR 1.05 billion (USD 13.9 million). Satya plans to use the capital to expand its work with migrant laborers and other poor people to create and preserve jobs, especially to counteract the effects of the COVID-19 pandemic. Satya CEO Vivek Tiwari said, “the capital infusion will serve as a driving force to Satya for reinforcing its vision of being a catalyst for the socio-economic upliftment of 5 million households by the year 2025…”. Gojo founder Sanjay Gandhi expressed confidence that Satya would “make the best use of fresh equity and continue with its journey to provide financing support to microentrepreneurs across the nation,” including through the increased use of technology.
Satya, which began operations in 2017, delivers financial services to 380,000 microentrepreneurs in 15,000 villages via 145 branches in 22 states in India. For 2019, it reported USD 108 million in assets. Gojo purchased a 25-percent stake in Satya in August 2018. The size of the stake it is purchasing now has not been released.
Founded in 2014, Gojo holds six microfinance institutions (MFIs) in India, Cambodia, Myanmar and Sri Lanka. The aggregate assets of these MFIs total USD 229 million. Among Gojo’s goals is “to be the ‘private sector World Bank’ providing financial access for 100 million people on every continent by the year 2030.” In particular, it plans to focus on MFIs in Asia before expanding to Africa in 2023 and Central and South America in 2026.
By Andrew Janni, Research Associate
Sources and Additional Resources
Digpu News Network article
https://www.digpu.com/business-and-finance/satya-microcapital-raises-inr-105-crore-equity-funding-from-japan-based-gojo-company-inc/87275/
Satya homepage
https://www.satyamicrocapital.com/
Gojo homepage
http://gojo.co/
Gojo company description
http://gojo.co/wp-content/uploads/2019/08/Gojo_Intro_E_2019-08.pdf
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