Hyderabad: New Delhi-based microfinance institution (MFI) Satin Creditcare Network Ltd (SCNL) on Friday said it had raised 41 crore from three venture capital firms—MicroVest II, LP, ShoreCap ll Ltd and Danish Microfinance Partners K/S.

The fresh equity raised marks the exit of Lok Capital Llc, SCNL’s first institutional investor. The promoter group has also contributed funds in this round. MicroVest additionally purchased all equity shares from Lok Capital.

Lok Capital, an India-focused venture capital fund concentrating on microfinance, education and healthcare, invested about 5 crore in SCNL in April 2008.

Unitus Capital was the financial advisor to the transaction.

“The exit of Lok Capital is the first complete exit of this scale in the Indian microfinance sector and underlines the buoyancy and growth potential of the sector despite having gone through testing times recently," the micro-lender said in statement.

The microfinance industry is yet to recover fully from a crisis set off by the passage of a 2010 law in Andhra Pradesh that tightened lending norms for MFIs by preventing them from giving a second loan to an existing borrower without government approval and barred them from visiting a customer’s premises.

SCNL has microfinance operations spread across nine states in north India with 158 branches and around 428,000 customers. It had a loan portfolio of 575 crore as of 31 March, representing an increase of 80% from a year ago.