Mumbai: Digital micro-finance institution Sindhuja Microcredit, which offers small loans to self-employed women entrepreneurs in rural areas, on Monday said it has raised $8.7 million in Series B funding from Norwegian development financier Nordic Microfinance Initiative (NMI) and Indian consumption-focused private equity fund, Carpediem Capital Partners.
In March last year, the Noida-based lender had raised $4 million in its Series A round led by Carpediem Capital.
“Our customers, self-employed rural women, are the most vulnerable in the covid-19 worlds with their livelihoods under direct threat. This funding will be used to scale our operations and provide much needed financing to these women micro-entrepreneurs," said Malkit Didyala, co-founder of the company.
Founded in 2018 by Didyala and Abhisheka Kumar, Sindhuja has given micro-loans to over 84,000 self-employed women across five states in northern India till date. The non-bank micro-lender operates through its 56 branches that are located in rural and remote rural areas and has over ₹1.7 billion in assets under management.
“At NMI, we firmly believe in the inherent potential of financial inclusion of poor and rural households in India and we are committed to supporting entrepreneurs who share this endeavor," said Arthur Sletteberg, managing director of NMI.
“The company is well-poised to tap on the market potential and we are very happy to support them at this crucial growth stage, amidst the prevailing global pandemic crisis," he added.
Law firm Vertices Partners advised Sindhuja Microcredit on the transaction.