Sindhuja Microcredit, a prominent North India-based Non-Banking Financial Company-Microfinance Institution (NBFC-MFI), has successfully raised $5 million (approximately ₹47 crore) in a pre-Series D funding round. The capital infusion comes entirely from existing backers, signaling strong institutional confidence in the firm’s rural-centric business model.

The round saw participation from Abler Nordic, Oikocredit, and GAWA Capital (via the Huruma Fund). This latest injection follows a steady streak of fundraising for the firm, which secured its Series C round just last year.

Strategic Expansion and Capital Strength

According to the company, the primary objective of this bridge round is to reinforce its capital base and scale its lending portfolio. Sindhuja plans to utilize the funds to deepen its reach within underserved markets, specifically targeting:

• Women Entrepreneurs: Supporting self-employed women in rural and semi-urban areas.

• MSMEs: Providing liquidity to small traders, shopkeepers, and farmers.

• Remote Communities: Extending credit to regions with limited traditional banking infrastructure.

Operational Footprint

Founded by Abhisheka Kumar and Malkit Singh Didyala, Sindhuja Microcredit has built a significant presence in the microfinance sector over the last eight years. The firm primarily utilizes the Joint Liability Group (JLG) lending model, which leverages community-based guarantees to provide unsecured loans to borrowers who lack traditional collateral.

The company currently reports the following operational milestones:

• Assets Under Management (AUM): Over ₹1,100 crore.

• Reach: Active across 12 states.

• Network: 366 branches serving more than 5 lakh borrowers.

Resilience and Growth Trajectory

Sindhuja’s fundraising history reflects a consistent ability to attract capital even during volatile periods. After an initial Series A from Carpediem Capital, the firm successfully navigated the Covid-19 pandemic to secure Series B funding. With the addition of Abler Nordic and GAWA Capital in subsequent rounds, the company has transitioned from a regional player to a significant national MFI.

This pre-Series D round acts as a tactical buffer, allowing the Noida-based lender to maintain its growth momentum and improve financial inclusion metrics before an anticipated larger equity round.

By: Sandhya Bharti