Margdarshak Financial Services, a Lucknow-based micro finance institution has today announced that it has secured approx. ₹19 crore ($3 million) in debt funding from BlueOrchard — a Singapore-based impact fund.
As a part of the deal, the company has issued non-convertible debentures (NCDs) with a maturity of five years to BlueOrchard. With new capital coming in, the company is looking to diversify its funding channels.
Commenting on this new funding, MFSL managing director Rahul J Mittra, said,
We have done a considerable amount of work in the areas of poverty alleviation, financial inclusion and livelihood creation. We are extremely glad that an institution of the repute like BlueOrchard has decided to support us. This long-term funding will enable MFSL to serve additional poor households in the unchartered territories of the country.
Margdarshak Financial Services, founded in 2004 with focus on financial inclusion and micro finance, currently has over 120 branches across five states in India — Uttar Pradesh, Bihar, Haryana, Uttarakhand, and Himachal Pradesh, which are among India’s least developed states.
It operates in areas that are underserved by other micro finance institutes. Social performance is high on the agenda and MFSL uses the progress out of poverty index (PPI) to monitor clients.
Backed by SIDBI and Dia Vikas, it has assets worth over ₹285 crore under management and claims to have over 2,00,000 active borrowers. The company’s mission is to provide bouquet of financial products and services to the economically weaker enterprising sections of the community for enabling mainstreaming and socio-economic betterment.
The investor of the current round, BlueOrchard — is one of the leading global impact investment management firm. It was founded in 2001 by initiative of the UN, and claims to be the first commercial manager of microfinance debt investments.
It has steadily expanded into asset classes including credit, private equity, and sustainable infrastructure. To date, BlueOrchard has invested more than $4 billion across 70 emerging and frontier markets.