Indian microfinance institution (MFI) Satya MicroCapital Limited recently raised an additional INR 1.53 billion (USD 20 million) in equity from Japanese microfinance investor Gojo & Company. The investment takes the total funds raised by the company to INR 2.6 billion (USD 36 million).
Satya CEO Vivek Tiwari said, “Self-employed women residing in rural and sub-urban hinterlands constitute our clientele. COVID-19 has induced a compelling threat to their livelihoods. We will be utilizing this funding to render essential credit services to women micro-entrepreneurs for their livelihood reformation via our extensive operational network.”
Satya began operations in 2017 and has since established 179 branches across 21 states in India. The MFI offers a health microinsurance product called HospiCash as well as group and individual loans for purposes such as microbusiness, sanitation and raising livestock. These loans range in size from INR 25,000 (USD 340) to INR 200,000 (USD 2,700) with terms of up to two years. Satya reported a gross loan portfolio of INR 10.1 billion (USD 133 million) and total assets of INR 11 billion (USD 147 million) as of March 2020.
Founded in 2014, Gojo holds stakes in seven MFIs in India, Cambodia, Myanmar and Sri Lanka. Among its 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 Aakansha Shenoy, Research Associate
Sources and Additional Resources
Satya homepage
https://satyamicrocapital.com/
Gojo homepage
https://gojo.co/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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