Northern Arc Capital Limited, a leading non-banking financial company (NBFC) in India, has successfully raised USD 75 million through senior secured non-convertible debentures (NCDs) listed on the BSE. The funding, with a five-year duration, comes from the Dutch development bank FMO, increasing Northern Arc’s overall exposure to USD 125 million.
Ashish Mehrotra, Managing Director and CEO of Northern Arc Capital, highlighted the significance of this investment. The funds will be allocated towards retail microloans, MSME loans, and green loan projects, aiming to foster sustainable economic growth and financial inclusion.
Northern Arc’s innovative platforms, including nPOS and Nimbus, are pivotal in this mission, facilitating seamless loan processing and effective debt management through cloud-based and API-enabled solutions.
Huib-Jan de Ruijter, Chief Investment Officer at FMO, emphasized the importance of providing long-term funding to MFIs and NBFCs in India, supporting entrepreneurship, innovation, and the formalization of SMEs and microenterprises. He expressed gratitude to Northern Arc for their partnership in enhancing financial inclusiveness across the country.
In April, Northern Arc raised USD 80 million in capital, equally split between debt and equity components, from the International Finance Corporation (IFC), further solidifying its position in the financial services sector. The company manages an Assets Under Management (AUM) of INR 10,081 crore and boasts a strong roster of equity investors including IFC, Sumitomo Mitsui Banking Corporation, and LeapFrog, among others.
The recent funding from FMO underscores Northern Arc’s strategic approach to expanding its impact in microfinance and sustainable finance sectors, aligning with global goals of economic development and environmental stewardship.