Under-served households focused NBFC Northern Arc bags $80-M from IFC

Chennai-headquartered non-banking financial company (NBFC) Northern Arc has raised USD 80 million from the International Finance Corporation (IFC), in equal halves of debt and equity components. The capital infusion will support the expansion of Northern Arc’s reach, fostering social impact through improved credit access to customers across its focused sectors.As of September 2023, Northern Arc has facilitated the financing of over INR1.5 lakh crore in credit through its technology platform spread across 682 districts in 28 states and seven union territories. Northern Arc claims to handle assets under management of INR 10,081 crore.The firm is backed by equity investors including Sumitomo Mitsui Banking Corporation, LeapFrog, 360 ONE (formerly known as IIFL), Accion, Augusta Investments (known as Affirma Capital), Dvara Trust, and Eight Roads (a proprietary arm of Fidelity).In February, Northern Arc proposed an initial public offering, which will consist of fresh equity shares valued at INR 500 crore and an offer for sale of up to 2.1 crore equity shares by investor shareholders.