PRESS RELEASE: Microfinance Venture Capital Fund Lok Capital to Invest $1.25m in India's Satin Creditcare, With More to Come From Journalist Swaminathan Aiyar

Original press release available here.

NEW DELHI, March 10 – Lok Capital LLC, an India focused microfinance venture capital fund, announces an investment of USD 1.25 million in Satin Creditcare Network Limited, one of the largest urban MFIs in India.

Lok Capital LLC will invest more than INR 48 million in Satin. Lok’s investment will help the company continue providing financial services to its clients as well as expand its product portfolio and geographical reach across India.

Mr. Swaminathan Aiyar, a noted Indian journalist will also invest in the company along with Lok Capital.

Satin Creditcare Network Limited is a leading urban / semi-urban microfinance institution (MFI) working in Delhi and NCR (Northern India) since 1990. It has now started to expand its operations to the rest of northern India and has its presence in more than 70 towns across 6 States.

Satin is uniquely positioned as being one of the first MFIs to target urban clientele and Northern India. Satin’s financial products have a distinct value proposition for small traders and shopkeepers in urban/semi-urban towns especially the daily repayment model.

Satin Chairman cum Managing Director HP Singh welcomed Lok Capital to the Satin team: “We are delighted to partner with Lok Capital. We believe our partnership will lead to strengthening of lending to the urban poor and micro businesses, which is still not the main focus of microfinance sector. Satin stands committed to develop diverse financial products for the urban poor.”

Mr. Vishal Mehta, Managing Director of Delhi-based Lok Advisory Services, which advised the Lok Capital Fund on the transaction, expressed his enthusiasm for Satin: “Over the years Satin has built its credibility in providing credit to the underserved urban clientele. We believe that Satin is now in a good position to expand its array of products as well as its geographic reach. Lok is looking forward to support Satin in expanding its current network to provide a host of financial services to the largely underserved population of Northern India. We are confident that this investment represents one of the best opportunities for supporting the growth of the urban microfinance in India.”

Satin Creditcare Network Ltd (SCNL) was founded by HP Singh in October 1990 with the objective of providing financial services at the doorstep to shopkeepers and petty traders in the market places of Delhi. The objective of the company is to provide affordable micro credit for productive activities to very small, small and medium entrepreneurs specially those who don’t have access to funds from any financial institution in the organized sector, which could augment and increase their income generating capacity, working in urban and semi urban areas. The complementary objective of the Company is to provide employment and healthy working atmosphere.

Lok Capital LLC is a USD 22 million Mauritius-based venture capital fund investing in commercially-oriented microfinance institutions in India. The Lok Capital fund is advised in India by Lok Advisory Services Pvt Ltd, a New Delhi-based team of management and finance professionals.Swaminathan Anklesaria Aiyar is a noted Indian journalist. He is an alumnus of The Doon School, St Stephen’s College, and Oxford University. He is currently consulting editor of The Economic Times. Swaminathan Aiyar writes a popular weekly column titled, “Swaminomics” in the Times of India where he discusses economic and political issues pertaining to India and the world. He has two books to his credit: Towards Globalisation (1992) and Swaminomics: Escape from the Benevolent Zookepers (forthcoming, Times of India, 2007).

PRESS RELEASE: Microfinance Venture Capital Fund Lok Capital to Invest $1.25m in India’s Satin Creditcare, With More to Come From Journalist Swaminathan Aiyar

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