Summary
Northern Arc, a prominent non-banking financial company (NBFC), has received a substantial $80 million investment from the International Finance Corporation (IFC), a member of the World Bank Group. This funding, comprising both debt and equity components, marks a significant milestone for Northern Arc, empowering its mission to expand services and improve credit access across diverse sectors. With a strong track record of facilitating over Rs 1.5 lakh crore in credit, Northern Arc operates extensively across India, serving as a key player in the financial services industry. The infusion of capital from IFC will enable Northern Arc to reach more end customers and promote financial inclusion, aligning with its commitment to drive social impact through enhanced credit accessibility. Supported by existing equity investors like Sumitomo Mitsui Banking Corporation and LeapFrog, Northern Arc is also gearing up for an initial public offering (IPO), signaling its ambitious growth plans. This strategic partnership with IFC and other investors positions Northern Arc for continued success in fostering inclusive growth and economic resilience.
Northern Arc Secures $80 Million Funding from IFC: Fueling Financial Inclusion and Expansion
Northern Arc, a prominent non-banking financial company (NBFC), has recently announced securing a substantial funding of $80 million from the International Finance Corporation (IFC), a member of the World Bank Group. This investment, comprising equal parts of debt and equity, is poised to fuel Northern Arc’s expansion efforts and its mission to enhance credit accessibility across diverse sectors.
Funding for Expansion and Social Impact: The infusion of $80 million, split evenly between debt and equity components, signifies a significant investment in Northern Arc’s expansion endeavors. More importantly, this funding is instrumental in advancing the company’s goal of promoting financial inclusion, thereby driving social impact through improved credit access.
Northern Arc’s Track Record and Reach: Northern Arc boasts a commendable track record, having facilitated credit financing exceeding Rs 1.5 lakh crore through its robust 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.
Multi-Channel Approach to Financial Services: With a multi-channel approach encompassing lending, placement, and fund management, Northern Arc is committed to bolstering the credit supply. Currently managing assets worth Rs 10,081 crore, the company demonstrates resilience and adaptability in navigating the ever-evolving financial landscape.
Partnerships and Investor Confidence: The funding from IFC adds to Northern Arc’s existing support from esteemed equity investors, including Sumitomo Mitsui Banking Corporation, LeapFrog, and Accion, among others. These partnerships underscore confidence in Northern Arc’s vision and its ability to drive positive change through financial empowerment.
Towards an IPO: Looking ahead, Northern Arc has set ambitious goals for further growth and expansion. The company has taken a significant step by initiating the process for an initial public offering (IPO), signaling a new chapter in its journey. The IPO, featuring fresh equity shares valued at Rs 500 crore and an offer for sale of up to 2.1 crore equity shares by investor shareholders, underscores Northern Arc’s commitment to sustained growth and market leadership.
As Northern Arc continues to evolve and innovate, its partnership with IFC and other investors positions it as a frontrunner in driving inclusive growth and fostering economic resilience. With a strong emphasis on financial inclusion and social impact, Northern Arc is poised to make significant strides in the financial services landscape, positively impacting communities and driving economic empowerment.
