Debt facility backed by guarantees from Michael & Susan Dell Foundation and Rockefeller Foundation
Under-banked households and micro-entrepreneurs across the country with a monthly household income of less than INR 25,000, will be the key beneficiaries of the funding
Chennai, April 19, 2021: Northern Arc, one of India’s leading digital debt platforms, today announced that it has received INR 40 crore of debt financing from Kotak Mahindra Bank, one of the country’s largest private banks. The facility is backed by partial guarantees from The Michael & Susan Dell Foundation (MSDF) and The Rockefeller Foundation. The transaction is part of the covid-response package of both these impact institutions, that aims to alleviate the economic and social impact of the pandemic.
[Funding alert] Northern Arc raises Rs 40 Cr debt from Kotak Mahindra Bank to help small businesses
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Northern Arc Capital raises $25 million debt from FMO - The Hindu BusinessLine
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Kolkata: Non-banking finance company Northern Arc Capital has raised $25 million debt from Dutch impact investor FMO, making it the second debt mobilisation from overseas investors in as many months. Last month, it raised $10 million from the US-based Calvert Impact Capital.
The infusion by overseas investors marks their confidence on India s grassroots loan market despite the headwinds amid the pandemic.
The funding from FMO will be used for on-lending to financial institutions that focus on women borrowers, micro-entrepreneurs and small enterprises, Northern Arc chief operating officer Bama Balakrishnan said.
Microfinance borrowers in both urban and rural areas will be key beneficiaries of FMO’s investment.
Northern Arc Capital raises $10 million from US investor Calvert Impact Capital
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Calvert Impact Capital plans to use the fund towards on-lending to financial institutions as well as lending directly to retail customers and to mid-market corporates.
AFP
The investment is aimed a aiding small businesses and promoting gender equity, a cause that is strongly endorsed by both organizations.
Northern Arc Capital has raised $10mn debt from US-based impact investor Calvert Impact Capital, close on the heels of its raising $50 million from American development bank US International Development Finance Corp.
This is Calvert Impact Capital’s largest debt investment in India, Northern Arc said in a statement.