Non-banking Financial Firm Northern Arc Secures USD 80 Mn from IFC With the raised funds, the Chennai-based platform aims to expand to reach end customers and improve credit access to customers across its focused sectors.
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Non-banking financial company (NBFC) Northern Arc announced the raising of USD 80 million in capital, split equally between debt and equity components, from the International Finance Corporation (IFC), a World Bank Group member.
According to the company statement, the capital infusion will support the expansion of Northern Arc's reach to end customers, fostering social impact through improved credit access to customers across its focused sectors.
"The investment marks the beginning of a long-term relationship with IFC and other multilaterals who believe in the India story and Northern Arc playing an instrumental role in India's growth story through financial inclusion," Ashish Mehrotra, MD and CEO of Northern Arc, said in a statement.
With a focus on financial inclusion, Northern Arc is an NBFC primarily involved in microfinance and MSME financing, although it also operates in the consumer finance, affordable housing, vehicle, and agricultural supply chain finance sectors.
"Our partnership with Northern Arc is a key component of our strategy to harness private sector expertise and finance in reaching millions of MSMEs and mid-market companies through innovative products," said Wendy Werner, IFC India Country Head.
According to the release, as of September 30, 2023, Northern Arc had enabled the financing of over INR 1.5 lakh crore in credit across 682 districts in 28 states and seven union territories in India using its technological platform.
The platform states that it manages assets of INR 10,081 crore. Equity investors in the company include Sumitomo Mitsui Banking Corporation, LeapFrog, Accion, Augusta Investments (formerly known as Affirma Capital), Dvara Trust, and Eight Roads (a Fidelity proprietary arm).
In February, Northern Arc Capital submitted preliminary papers to SEBI for an initial public offering. The IPO will consist of fresh equity shares valued at INR 500 crore and an offer for sale of up to 2.1 crore equity shares by investor shareholders.
