Supporting the financial inclusion of Indian women in rural areas

Satya MicroCapital Limited (Satya) was incorporated in 2017 and is one of the top 13 microfinance institutions (MFIs) in India. Headquartered in New Delhi, it is promoted by Mr. Vivek Tiwari, an experienced MFI professional. Satya has operations in 22 Indian States and follows the Joint Liability Group (JLG) lending model. The gross loan portfolio as of 31 December 2022 is USD 427m, with more than USD 1.13m of loans outstanding and 408 branches. Satya also engages the clients by offering them non-lending social initiatives, such as health awareness workshops, insurance services and financial literacy courses. With an equity base of USD 80m, the MFI is owned by the sponsors and the impact investor Gojo & Co.

Proparco's USD 20m of financing will support Satya MicroCapital’s commitment to empowering women entrepreneurs in rural India through improved access to finance. 

In addition to financial support, Proparco will help the company implement appropriate customer protection policies and streamline its environmental and social policy. The project meets 2X Challenge criteria.

The main expected economic and social impacts are:

• Improved access to financing for 53,730 micro-entrepreneurs running their own MSMEs
• Support for 714 direct jobs at Satya (including the creation of 521 direct jobs) and 259,000 jobs in the MSMEs  

Satya provides loan products to women’s groups (96% of the client base) and especially young women (42% of the client base) and focuses specifically on rural areas (87% of the client base). Women account for 33% of Satya’s top management. Satya is also committed to women’s protection and has set up a helpline and grievance mechanism to prevent or address gender-based violence towards women staff (the project fully qualifies for the 2X Challenge initiative).

The project will contribute to the achievement of SDG 1 (No poverty), SDG 5 (Gender equality), SDG 8 (Decent work and economic growth) and SDG 10 (Reduced inequalities).