Northern Arc Capital (formerly IFMR Capital), a leading debt capital platform for MFIs and NBFCs, has raised Rs 910 crore (around $130 million) from IIFL Special Opportunities Fund and its series managed by IIFL Asset Management, Standard Chartered Private Equity (SCPE) and Affirma Capital, a newly formed, independent private equity firm to be managed by the team at SCPE.
With this round of funding, the total equity raised by Northern Arc stands at Rs 1,400 crore ($ 200 million). As part of this transaction, early investors Dvara Trust, LeapFrog Investments and Accion will partially sell their stake in the company, but will however continue to stay significantly invested and remain bullish on the business.
Kshama Fernandes, MD & CEO, Northern Arc Capital, said, “This is a significant milestone for Northern Arc and testament to the confidence placed by investors in the company. The capital will allow us to significantly scale-up the existing business and pursue new opportunities.”