SATYA MicroCapital to foray into affordable housing finance business
- ByStartupStory | July 15, 2022
In a statement, Satya MicroCapital said that its soon-to-be-launched subsidiary would be entering the market for affordable home financing with support from Japanese impact investor Gojo & Company Inc. The New Delhi-based microlender is also providing its subsidiary with capital in the amount of Rs 50 crore, and it plans to raise an additional Rs 50–75 crore in the current fiscal year.
“After successfully acquiring and rebranding Baid Home Financing, the NBFC-MFI plans to set the groundwork for a brand-new arm that will play a vital role in the Indian housing finance industry. Satya MicroCapital intends to meet the demand for inexpensive housing among its current clientele as well as the unexplored market for affordable housing nationwide “The statement said.
Satya MicroCapital, which focuses on rural women entrepreneurs, raised $15 million (about Rs 117 crore) in new funding last month, with the help of Gojo & Company Inc., an existing Japanese investor. Satya MicroCapital has received various investments from Gojo & Company, which owns holdings in several microlenders, including an equity capital round in August 2018. The microfinance organisation had previously received funding from Dia Vikas Capital and Swiss impact investor BlueOrchard Finance. It also received finance early this year in the form of non-convertible debentures (NCDs) from funds managed by responsAbility Investments AG for a total of Rs 42 crore (about $5.65 million).
Satya MicroCapital’s Managing Director, Chief Executive Officer, and Chief Investment Officer, Vivek Tiwari, said, “We are anxiously awaiting the completion of the transition after receiving regulatory approval from the RBI (Reserve Bank of India) for the acquisition. 250 crore worth of loans is what we hope to originate in our first full year of business. Our primary financial preference will be to assist first-time homebuyers in constructing their ideal residence.”
Vivek Tiwari launched Satya MicroCapital after buying the non-bank lender TFC Finvest Ltd. in New Delhi and renaming it Satya MicroCapital. Started in 2017, the company now serves more than nine lakh customers seeking credit assistance for their income generation and income growth purposes in sectors like agriculture, animal husbandry, business/trade, production/services, and water sanitation through more than 350 branches spread across more than 35000 villages in 225 districts of 21 states.
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