Northern Arc Capital Limited, a diversified non-banking financial company (NBFC), has raised $75 million (about ₹620 crore), from FMO, the Dutch entrepreneurial development bank.

This fund raise, is through issuance of senior secured, listed Non-Convertible Debentures (NCDs). With this latest transaction, the overall exposure of FMO in Northern Arc, stood at $125 million. 

Ashish Mehrotra, Managing Director & CEO of Northern Arc Capital, said “This substantial investment from FMO, underscores our unwavering commitment, to transforming the financial landscape, for under-served individuals, and businesses in India. By channelling these funds into microloans, SMEs, and green projects, we aim to create a cascading effect, that promotes sustainable economic growth, and financial inclusion”.

The NCDs will be listed on BSE Limited (BSE), and have a tenure of five years. The funds raised through this issuance, will be strategically deployed, in retail microloans, MSME loans, and green loans, reflecting Northern Arc’s commitment, to fostering inclusive economic growth, and environmental sustainability.

Huib-Jan de Ruijter, Chief Investment Officer at FMO, said “We are very pleased to be able to provide long-term funding for MFIs, and NBFCs in India, which have limited access to term funding, from capital markets. This local currency facility to Northern Arc, supports entrepreneurship, innovation, and encourages the formalisation, and growth of SMEs, and microenterprises. We want to thank Northern Arc for our partnership, enhancing financial inclusiveness across India”.

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