Indian financial services firm, Northern Arc Capital, has secured a substantial $75 million in debt funding from the Dutch development bank, FMO. This financing will play a crucial role in supporting Northern Arc’s mission to enhance financial inclusion and provide access to credit for underserved segments across India.
Expanding Financial Services for Underserved Sectors: The $75 million debt funding will allow Northern Arc Capital to broaden its lending portfolio, offering critical financial services to micro, small, and medium enterprises (MSMEs) as well as individual borrowers who lack access to traditional banking channels. This strategic infusion of capital aligns with Northern Arc’s commitment to bridging the financial gap and supporting the economic growth of marginalized communities.
Recognition of a Robust Business Model: FMO’s decision to invest in Northern Arc Capital highlights the Dutch development bank’s confidence in the Indian firm’s robust business model and its potential to drive significant social impact. The funding will be crucial in scaling Northern Arc’s operations, improving credit penetration, and fostering sustainable development in India’s financial ecosystem.
Embracing Technology and Data Analytics: Northern Arc Capital has established itself as a pioneer in delivering financial solutions specifically tailored to meet the unique needs of underserved markets. The injection of funds from FMO will further strengthen the firm’s ability to leverage technology and data analytics, thereby facilitating the delivery of efficient and inclusive financial services.
Unlocking Financial Empowerment and Inclusion: The partnership between Northern Arc Capital and FMO represents a significant milestone in the firm’s journey towards financial empowerment and inclusion. This collaboration is expected to attract further investments and forge impactful partnerships, further solidifying Northern Arc’s position as a key player in India’s financial inclusion landscape.
Conclusion: The successful $75 million debt funding secured by Northern Arc Capital from FMO is set to drive tangible and sustainable changes within India’s financial ecosystem. With increased resources, Northern Arc will continue to pave the way in expanding financial services to the underserved sectors, leveraging technology, and benefiting marginalized communities. Huge advancements are on the horizon for Northern Arc as they remain committed to transforming the lives of millions while contributing to India’s economic growth.
