Impact Investing Boosts Business Expansion for Sindhuja Microcredit with Rs 120 Cr Funding
In a significant development for the microfinance sector in India, Sindhuja Microcredit has secured a substantial investment of Rs 120 crore, aimed at propelling its growth and furthering its mission to support underserved communities. This infusion of capital comes from two notable impact investors, GAWA Capital and Oikocredit, marking a pivotal moment for the Noida-headquartered microfinance institution.
With an ambitious plan to utilize the freshly acquired funds, Sindhuja Microcredit intends to broaden its reach within its current operational areas and to venture into newer geographies. This strategic expansion underscores the organization’s commitment to fostering financial inclusion and supporting the economic aspirations of self-employed women across various states in India.
Since its inception six years ago, the microfinance company has made significant strides in promoting gender inclusivity and financial empowerment, having provided loans to approximately 400,000 self-employed women. Its operational footprint spans nine states, covering the northern, western, and eastern regions of India. The current asset portfolio managed by Sindhuja stands impressively at over Rs 1,000 crore, with a solid network of 235 branches facilitating its operations.
Highlighting the core focus of their collaboration, GAWA Capital’s co-founder AgustÃn Vitórica expressed the unified goal of empowering India’s underserved farming community. This initiative aims to not only provide financial support but also to enhance the lives of rural inhabitants and women borrowers through sustainable and impactful lending practices.
The commitment to leveraging technology for financial inclusion is strongly echoed by the promoters of Sindhuja Microcredit, Abhisheka Kumar and Malkit Singh Didyala. Through this funding, they envision a marked improvement in the availability of financial services to those traditionally excluded from the mainstream financial system, especially MSME entrepreneurs. The drive towards using technological innovations is aimed at simplifying access to financial resources, thereby catalyzing the growth and economic stability of its clientele.
This landmark fundraise is a testament to the growing acknowledgment of microfinance as a crucial tool for socio-economic development, particularly in regions where access to traditional banking and financial services is limited. With the backing of GAWA Capital and Oikocredit, Sindhuja Microcredit is well-positioned to scale its operations and make significant contributions towards the broader objectives of financial inclusion and empowerment for marginalized communities in India.
