Sindhuja Microcredit Raises $14.5 Million in Series C Funding from GAWA Capital, Oikocredit

• ByStartupStory     |    March 28, 2024

Microfinance provider Sindhuja Microcredit has secured $14.5 million in a Series C funding round from prominent investors GAWA Capital and Oikocredit. The company, which caters to rural self-employed women entrepreneurs, announced the successful funding round on Thursday, emphasizing its commitment to expanding financial access in underserved communities.

Headquartered in Noida and registered with the Reserve Bank of India, Sindhuja Microcredit focuses on addressing the financial and non-financial needs of rural and semi-urban populations. Its services extend to providing business loans to traders, shopkeepers, and farmers for working capital and business expansion.

Abhisheka Kumar, Managing Director, and Malkit Singh Didyala, Chief Executive Officer of Sindhuja Microcredit, expressed their gratitude for the support from GAWA Capital and Oikocredit, stating, “GAWA Capital and Oikocredit are well-known international impact investors and it is a matter of pride for us to have their backing. The funding further strengthens our commitment to make financial service easily available to the financially excluded and MSME entrepreneurs through technology-driven solutions.”

Agustín Vitórica, Co-Founder of GAWA Capital, highlighted the significance of Sindhuja’s mission, stating, “Sindhuja is focused on supporting people from rural areas and women borrowers, and our collaboration aims to empower India’s underserved farming community. We’re confident that the company is poised to meet this challenge by providing products and services of value to this segment.”

Unitus Capital served as the Exclusive Financial Advisor for the transaction, while Vertices Partners acted as the Legal Counsel for Sindhuja Microcredit.

Previously, Sindhuja had secured Series A funding from Carpediem Capital, marking its first institutional investor backing during a crucial period in India’s financial sector amidst the IL&FS crisis. The company had also raised Series B funding amidst the initial phase of the Covid-19 pandemic and pre-Series C funding recently, both led by Abler Nordic, with participation from Carpediem Capital.

Since its launch in 2018, Sindhuja Microcredit has provided micro-loans to over 4 lakh self-employed women micro-entrepreneurs across nine states in northern, eastern, and western India. Currently operating 235 branches, the company manages assets worth over Rs 1,000 crore.

According to a report by credit bureau Crif High Mark, India’s microfinance sector reported Rs 402.6K crore in portfolio outstanding as of December 2023, with quarterly growth of 6 per cent and yearly growth of 30.9 per cent. NBFC MFIs dominate the market with a portfolio share of 38.3 per cent, followed by banks at 33.4 per cent, small finance banks at 17.4 per cent, and NBFCs at 9.4 per cent as of December 2023.

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