CreditAccess Grameen Secures €25 Million from DEG and ₹170 Crore from Citi Through Co-Financing Arrangement

• ByStartupStory     |    November 30, 2024

CreditAccess Grameen, a leading microfinance-focused Non-Banking Financial Company (NBFC), has successfully raised €25 million from the German Investment Corporation (DEG) and ₹170 crore through a co-financing arrangement with Citi. This innovative financing structure combines development finance with private-sector funding to address the financial needs of underserved communities in India. Citi played a pivotal role in the transaction, serving as the lead arranger and coordinator.

Highlighting the significance of this development, Nilesh Dalvi, Chief Financial Officer of CreditAccess Grameen, stated, “This strategic move positions us well to navigate macroeconomic cycles, ensuring a strong foundation for sustainable growth in the coming years. The growing share of foreign borrowings plays a key role in bolstering our liquidity and Asset-Liability Management (ALM) position, diversifying geographical risk, and strengthening our financial resilience.”

Neeraj Kumar, Managing Director and Head of Corporate Bank, India Sub-Continent at Citi, emphasized the social impact of the co-financing arrangement. He said, “This arrangement will support women micro-entrepreneurs and is core to Citi’s financial inclusion agenda in India. Citi has set a social finance goal to enable access to basic services and economic opportunities for 15 million low-income households, including 10 million women, in emerging markets.”

Founded in May 1999 by Vinatha Reddy and co-founded by Suresh Krishna, CreditAccess Grameen originated as a project under the NGO T. Muniswamappa Trust in Avalahalli, South Bengaluru. Transitioning into an NBFC in 2007-08, the company provides tailored loans to help women borrowers in rural areas start or expand income-generating activities. The NBFC also offers financing for home repairs, two-wheeler purchases, and gold-backed loans. Currently, it operates across 398 districts in 16 Indian states through 2,031 branches.

Karin Homermann, Vice-President of DEG, commended the collaborative effort, stating, “We would like to express our gratitude towards the CA Grameen team for their great cooperation in bringing the deal to the finish line. We are proud to be part of the high impact generated by CA Grameen’s financing of women borrowers in rural India.”

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