IFMR Capital, one of India’s leading debt capital platforms, has unveiled a new brand identity and will henceforth be known as Northern Arc Capital. Inspired by an ancient trade route that provided the first contact between the worlds of those with access to those without, Northern Arc Capital will continue to be the critical link between providers and users of capital across markets.
Over the last 10 years, the company has played a pioneering role in enabling financial inclusion in India by providing entities that target low income households and small businesses with critical access to debt capital markets. As it enters its second decade of existence, the company aims to magnify its impact by expanding its footprint to newer sectors and markets. It plans to enter into strategic alliances with domestic and international institutions that are committed to the long-run.
The company has signed its first international MoU with a large global bank and has received anchor investor interest for its first overseas Alternate Investment Fund. It is also in the process of making its first overseas joint-venture investment. This will provide the company the opportunity to extend its learning onto a global platform. Its ongoing guarantee program with the Asian Development Bank is also being expanded to cover newer product categories.
Northern Arc Capital is backed by Dvara Trust (Formerly IFMR Trust), LeapFrog Investments, Eight Roads Ventures and Standard Chartered Private Equity.
Speaking on this landmark occasion, Kshama Fernandes, CEO of IFMR Capital said “We are excited to scale our path breaking work under our new brand Northern Arc. A decade ago, we set on a mission to provide access to finance for under-banked individuals and businesses.”
Since inception in 2008, the company has partnered with more than 140 institutions to impact the lives of over 33 million customers across 29 states and 5 Union Territories. The company has enabled debt financing of USD 7 bn across sectors like microfinance, small business loans, affordable housing finance, vehicle finance and agri finance. It has structured and executed over 400 transactions which have been placed with over 120 investors.
The firm has developed several innovative products that have changed the landscape of the financial inclusion sector, including the world’s first multi originator securitization, MOSECR. Other unique product structures include India’s first Pooled Bond Issuance, Pooled Loan Issuance, and the first securitization transaction in the consumer durables sector. It also follows a skin-in-the-game approach by co-lending or investing in the debt-structures of entities it takes to the capital market.
As part of the rebranding initiative, IFMR Investment Managers, the subsidiary of IFMR Capital, an Alternate Investment Fund vehicle, will be known as Northern Arc Investment Managers. In a short span of three years, the entity already has six funds under its management and has gained recognition for its product structuring.
Northern Arc Capital Limited (formerly known as IFMR Capital Limited) is a Non-Banking Finance Company that provides access to debt for under-banked individuals and businesses in India. As of January 31, 2018 Northern Arc has structured, arranged and invested in over USD 7 billion of financing to institutions enabling 33 million end customers to be served.