Northern Arc Raises USD 40 Mn from IFC for Credit Expansion

Mumbai, Apr 24 (PTI) Non-bank lender Northern Arc on Wednesday announced a USD 40 million equity fundraise from the International Finance Corporation (IFC).

The 2009-founded company, which provides services beyond lending like fund management, also raised USD 40 million in debt from IFC, as per an official statement.

"This investment from IFC is a strong endorsement from a large global multilateral to our mission of enabling credit to the underserved and unserved people in India," its Managing Director and Chief Executive Ashish Mehrotra said.

He added that the funding marks the beginning of a long-term relationship with IFC and other multilateral institutions who believe in the India story.

The capital will support the expansion of the company's reach to end customers, fostering social impact through improved credit access to customers across its focused 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," IFC's country head for India Wendy Werner said.

The company has facilitated financing of over Rs 1.5 lakh crore in credit through its technology platform using data insights derived from a large data repository and domain expertise, the statement said.