Northern Arc secured $10M in funding from Calvert Impact Capital

Northern Arc Capital, which is a Chennai-based digital debt platform, has now secured $10 million in debt funding from the Calvert Impact Capital via the External Commercial Borrowing (ECB).

According to the company report, this is Calvert Impact Capital’s largest debt investment in India so far. Northern Arc will be going to use the funds towards lending to financial institutions as well as lending directly to the retail customers and to mid-market corporates.

Bama Balakrishnan, Chief Operating Officer of Northern Arc, said,

“The partnership with Calvert Impact Capital is long-term and multi-dimensional, helping both organisations achieve common goals across impact and growth. These include aiding small businesses and promoting gender equity, a cause that is strongly endorsed by both organisations. The facility’s longer duration will expand Northern Arc’s ability to fund MSMEs and households.”

“Northern Arc Capital has been instrumental in strengthening Indian debt capital markets to the benefit of organisations serving underbanked populations. Today, more than ever, these companies and their clients benefit from access to a diversity of funding sources and the relationship-based approach of the Northern Arc model. As an investor, we benefit from leveraging the market and credit expertise of the Northern Arc team as we put capital to work for impact in India,” added Daniel Ford, Investment Officer, Calvert Impact Capital.

Northern Arc Capital Limited, which is formerly known by the name IFMR Capital Finance Limited, is a nonbanking finance company that offers access to debt for underbanked individuals and businesses in India. With a combination of products, capital, and partnerships, Northern Arc and its subsidiaries have built a platform that connects millions of borrowers to mainstream debt investors.

Since its inception, it has enabled more than $12 billion of funding to around 200 partner organizations via 140 reputed domestic and global investors.

Also Read: Cedar secured $200M in Series D Funding to Continue Fueling Growth

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