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: A Boost for Financial Inclusion
In a significant development in the financial services sector, Northern Arc, a prominent non-banking financial company (NBFC), has garnered $80 million in funding from the International Finance Corporation (IFC), a member of the World Bank Group. This funding, split equally between debt and equity components, underscores a substantial investment in Northern Arc’s expansion endeavors and its overarching mission of enhancing credit accessibility across diverse sectors.
Facilitating Financial Inclusion
The infusion of capital from IFC signifies a critical milestone for Northern Arc, enabling it to extend its reach to end customers and promote greater access to credit. By leveraging this funding, Northern Arc aims to drive social impact through enhanced financial inclusion, thereby empowering individuals and businesses alike.
A Strong Track Record
With a proven track record of facilitating over Rs 1.5 lakh crore in credit through its technology-driven platform, Northern Arc has emerged as a key player in the financial landscape. Operating across 682 districts in 28 states and seven union territories in India, the company has demonstrated its ability to navigate and excel in a dynamic market environment.
Multi-Channel Approach to Credit Supply
Northern Arc adopts a multi-channel approach encompassing lending, placement, and fund management to bolster the supply of credit. With assets under management totaling Rs 10,081 crore, the company has cemented its position as a reliable and impactful player in the financial services domain.
Confidence from Investors
The funding from IFC complements 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.
IPO Plans and Future Outlook
Looking ahead, Northern Arc has embarked on a new phase of growth and expansion by initiating the process for an initial public offering (IPO). The IPO, which includes 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, signifies a significant milestone in Northern Arc’s journey.
As Northern Arc continues to evolve and innovate, its collaboration with IFC and other investors positions it for success in fostering inclusive growth and economic resilience. With a steadfast commitment to driving financial inclusion, Northern Arc remains poised to make a meaningful impact on the lives of millions across India.
