Highlights:
- Northern Arc, a leading non-banking financial company (NBFC), has secured $80 million in funding from the International Finance Corporation (IFC), a member of the World Bank Group.
- The funding comprises equal halves of debt and equity components, reflecting a significant investment in Northern Arc’s expansion and its mission to enhance credit access across various sectors.
- This funding will support Northern Arc’s efforts to reach end customers and promote financial inclusion, driving social impact through improved access to credit.
Northern Arc, a non-banking financial company (NBFC), has secured a significant funding boost of $80 million from the International Finance Corporation (IFC), a member of the World Bank Group. This funding, divided equally between debt and equity components, marks a pivotal moment for Northern Arc as it embarks on a mission to expand its services and enhance credit access for customers across various sectors.
The infusion of capital from IFC comes at a crucial time for Northern Arc, allowing it to extend its reach to end customers and facilitate greater access to credit. This move aligns with the company’s overarching goal of driving social impact through financial inclusion.
Northern Arc has a robust track record, having facilitated the financing of over Rs 1.5 lakh crore in credit through its technology platform. Operating across 682 districts in 28 states and seven union territories in India, the company has established itself as a key player in the financial services sector.
Utilizing a multi-channel approach that encompasses lending, placement, and fund management, Northern Arc is dedicated to bolstering the supply of credit. With assets under management totaling Rs 10,081 crore, the company has demonstrated its ability to navigate and thrive in the dynamic financial landscape.
The funding from IFC adds to Northern Arc’s existing support from equity investors, including Sumitomo Mitsui Banking Corporation, LeapFrog, Accion, and others. These partnerships underscore the confidence in Northern Arc’s vision and its commitment to driving positive change through financial empowerment.
Looking ahead, Northern Arc has set its sights on further growth and expansion. The company has taken a significant step towards this goal by submitting preliminary papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO, which will include fresh equity shares valued at Rs 500 crore, along with an offer for sale of up to 2.1 crore equity shares by investor shareholders, represents a new chapter in Northern Arc’s journey.
As Northern Arc continues to evolve and innovate in the financial services landscape, its partnership with IFC and other investors positions it for success in driving inclusive growth and fostering economic resilience.
