Sindhuja Microcredit raises Rs 120 cr in Series C Funding

Mumbai, Mar 28: Sindhuja Microcredit, a new generation digital and rural-focused microfinance institution (MFI) providing financial services to self-employed women entrepreneurs, has raised $14.5 million (Rs. 120 crore) in a Series C funding round from GAWA Capital (through its vehicle Huruma Fund) and Oikocredit. The company will deploy the funds to expand the business in its existing geography and foray into new geographies as well as new product lines.

Commenting on the funding round, Abhisheka Kumar, Managing Director and Malkit Singh Didyala Chief Executive Officer, Sindhuja Microcredit said, “GAWA Capital and Oikocredit are well-known international impact investors and it is a matter of pride for us to have their backing. We are also humbled by the continued confidence shown by Carpediem Capital and Abler Nordic, our existing investors who participated in our pre-Series-C round. The funding further strengthens our commitment to make financial service easily available to the financially excluded and MSME entrepreneurs through technology-driven solutions."

Commenting on their investment, Agustín Vitórica, Co-Founder, GAWA Capital said, “We're thrilled to join forces with Sindhuja Microcredit and look forward to supporting their growth and expansion into new areas and products. 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.”

Abhinav Natani, Equity Analyst, Oikocredit added, “At Oikocredit, we firmly believe that financial inclusion is a catalyst for driving both social and economic development. Our decision to invest in Sindhuja Microcredit, which is dedicated to serving underserved states in India, underscores our commitment to provide access to finance for low-income segments of society. We are thrilled to deepen our partnership with Sindhuja and to work together to elevate financial inclusion to new heights.”

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

In reference to the partnership with Sindhuja, Amit Agarwal, Managing Director, Unitus Capital, “We take pride in our association with Sindhuja Microcredit, led by seasoned founders Abhisheka and Malkit. Sindhuja Microcredit sets itself apart as an innovative MFI, leveraging its tech-centric approach in deep rural geographies. With this fresh infusion of capital, it is well-positioned for the next phase of growth.”

Earlier, Sindhuja raised Series A funding from Carpediem Capital, which came in as the first institutional investor backing the company at an early stage while India’s financial sector was in the middle of the IL&FS (Infrastructure Leasing & Financial Services) crisis. The company raised Series B funding during the first phase of the COVID-19 pandemic and pre-series C recently. Both rounds were led by Abler Nordic, with participation from Carpediem Capital.

Sindhuja, in its six years of operation, has so far provided micro-loans to over 400,000 self-employed women micro-entrepreneurs across nine states in northern, eastern and western parts of India. The company currently operates 235 branches with over Rs. 10 billion in Assets under Management (AUM). Serving ‘base of the pyramid’ clients, a majority of Sindhuja’s branches are located in rural and remote rural regions.