Microfinance lender Satya MicroCapital raises up to Rs 300 crore via Rights Issue

Non-banking microfinance institution Satya MicroCapital has raised up to Rs 300 crore through rights issue of shares with pre-emptive rights for existing shareholders. The proceeds from the issue will primarily be used towards expanding the lender’s loan portfolio, improving technology infrastructure, and boosting operational capabilities. The company said it would also help in enhancing its lending capacity and geographical expansion to marginalised communities across rural and semi-urban areas.

Launched in 2017, the microfinance company offers loans to MSMEs, limited liability loans for rural women to start or expand their micro ventures, and credit for access to drinking water and basic sanitation facilities.

Also read: Nearly 1 Lakh MSMEs Shut Since FY21; Minister Jitan Ram Manjhi Cites Key Reasons

“This rights issue marks another significant step towards achieving our mission of fostering financial inclusion at scale. The fresh capital will enable us to meet the growing credit demand while maintaining our focus on sustainable and responsible lending,” said Vivek Tiwari, MD & CEO, SATYA MicroCapital.

The company had last secured Rs 500 crore from Japanese multinational financial services institution Sumitomo Mitsui Banking Corporation in September 2024. It had reported an 80 per cent drop in net profit to Rs 25.4 crore in FY25 from Rs 131 crore in FY24 while operational revenue remained flat at Rs 1,292 crore from Rs 1,258 crore in FY24.

Also read: Bridging the Digital Divide: Why MSMEs Aren’t the Problem, Tech Design is

India’s microfinance sector has been reeling under stress marked by growing defaults and reduced loan disbursements. As per Crisil, almost a fourth of the microfinance portfolio with more than three lenders is in the PAR (portfolio at risk) 31-180 days bucket as on June 30, 2025.

The credit cost for microfinance lenders is likely to stay high at around 6 per cent in the current financial year, despite a slight drop from 7.7 per cent in the previous fiscal. As a result, the overall profitability is expected to normalise by the fourth quarter of the current fiscal.