Funding · Financial Services

Sindhuja Microcredit raises $5M from existing investors

What they do

Sindhuja Microcredit is an NBFC-MFI serving rural women and MSMEs across India

The company raised $5 million in a pre-Series D round led by existing backers

Funds will strengthen its capital base and expand credit access to underserved communities

Sindhuja Microcredit raised $5 million in a pre-Series D funding round.
The investment was contributed by existing shareholders including Abler Nordic, GAWA Capital, and Oikocredit.
The company plans to use the funds to strengthen its capital base and support business expansion.
This capital injection aims to scale credit access for underserved communities across India.
The current valuation status has been postponed until the Series D round closes.
Existing investors received a discount on their participation in this latest funding round.
The raise comes as the microfinance sector faces pressure from high NPAs and economic uncertainty.
Sindhuja reported strong asset quality with only 0.6% of loans past due in FY25.

The microfinance sector is currently experiencing high NPAs and slow economic growth.
Natural disasters have added further uncertainty to lending operations in rural areas.
Existing investors continuing to back the company indicates confidence in its operational model.

Sindhuja operates as an NBFC-MFI focused on rural lending and financial inclusion.
It primarily serves self-employed women entrepreneurs, MSMEs, and smallholder farmers.
The company uses a Joint Liability Group model for unsecured loan disbursement.
Its operations are supported by technology-enabled solutions to manage risk and efficiency.
Sindhuja covers 12 states across Northern, Eastern, Southern, and Western India.
The network includes 366 branches to facilitate direct customer engagement and service delivery.
It has served over 5 lakh borrowers during its eight years of operations.
The gross loan portfolio grew to ₹1,080 crore at the end of March FY25.
The company maintains a capital adequacy ratio of 30% as per FY24 data.

Product: Joint liability group loans and individual lending products for self-employed and small business owners
Customers: Self-employed women entrepreneurs, traders, shopkeepers, and farmers in rural and semi-urban markets
How it makes money: NBFC-MFI model providing digital and technology-enabled lending solutions with on-ground operations
What sets it apart: Hybrid model combining technology-led workflows with on-ground field operations for underserved markets