Satin Creditcare Network Limited (SCNL), a microfinance institution, has announced the successful completion of its recent round of funding to the tune of Rs 28.44 crore. The funding has been raised from Norwegian impact investor NMI Fund III KS ("NMI"). Unitus Capital was the sole financial advisor to the transaction. SCNL has been one of the fastest growing MFIs in India growing its portfolio to around Rs. 1,050 crores (as on 31 March 2014) from Rs. 580 crores (as on 31 Mach 2013) - representing a growth of 81% for the year. It has the largest number of banking relationships compared to all other Microfinance Institutions in the country, including 18 public sector banks, 11 private sector banks, 5 foreign banks and 18 domestic and foreign institutional lenders.
In the current financial year ending 31 March 2014, SCNL mobilized Rs. 1,121 crores through debt funding, cash credit limit and securitization/assignment transactions and was successfully able to diversify funding sources over the year through increasing reliance on nonconvertible debentures (NCDs) and securitization of portfolio.
SCNL also raised Rs. 6 crores from an Indian investor through private placement of Cumulative Non convertible compulsorily redeemable preference shares in last quarter of FY 2013-14 as Tier II Capital.
SCNL's current institutional investors include ShoreCap II Limited (managed by Equator Capital Partners LLC), Danish Microfinance Partners K/S and M V Mauritius Limited.
SCNL was also the first microfinance institution to provide complete exit to Lok Capital, an early investor in SCNL in March 2013 demonstrating the buoyancy and growth potential of the sector. The newly infused equity will provide SCNL with the impetus needed to grow in the rural areas in North India and impact more than 100,000 households and increase the outreach to 1 million borrowers. HP Singh, Chairman cum Managing Director, SCNL said, "We are very pleased to welcome NMI as a long term partner to SCNL. With this round of capital infusion, we are poised for a reasonably higher growth as well as diversification and scale. We are confident that we will be able to expand and provide a range of financial services to the underserved population of the country."