Northern Arc Capital, a non-banking finance company focussed on under-served households and businesses, has raised ₹325 crore in debt funding from GuarantCo along with Axis Bank. GuarantCo is part of the UK-based Private Infrastructure Development Group (PIDG).
In a press release, the Chennai-based Northern Arc said that the funds will be deployed across sectors like microfinance, small business enterprises, commercial vehicle financing, affordable housing and education.
Ashish Mehrotra, CEO & MD, Northern Arc Capital, said over the years several global development financial institutions like USDFC, ADB, CDC Group, FMO, JICA and Proparco have invested in Northern Arc due to its innovative credit solutions, underwriting framework and robust risk models.
The IPO-bound Northern Arc said it has cumulatively raised over ₹1.1 lakh crore in funds for its clients since the inception of its platform in 2009. It has also facilitated over 80 lakh loans to retail customers.
Layth Al-Falaki, CEO of GuarantCo said that easier access to finance and longer terms offered to borrowers will not only benefit the local economy but also improve the lives of an estimated two-lakh Indians.