US International DFC commits over USD 272 mn for India's growth
One of the major investments includes a USD 40 million loan to APAC Financial Services Pvt. Ltd., which will expand lending to low-income and new-to-credit microenterprises across India, providing long-term capital to some of the country's smallest businesses.
ANI
Oct 03, 2024 16:36 IST
New Delhi [India], October 3 (ANI): The U.S. International Development Finance Corporation (DFC) has approved and committed more than USD 272 million in investments aimed at bolstering economic growth, financial inclusion, and sustainability in India.
These investments will provide crucial support to small businesses, women entrepreneurs, climate-focused ventures, and key sectors like agriculture, healthcare, and electric vehicles.
One of the major investments includes a USD 40 million loan to APAC Financial Services Pvt. Ltd., which will expand lending to low-income and new-to-credit microenterprises across India, providing long-term capital to some of the country's smallest businesses.
In a move to stimulate agricultural trade, DFC has approved a USD 19.8 million loan guaranty to Aryatech Platforms Pvt. Ltd., aimed at connecting small farmers, producer organizations, and agricultural buyers, facilitating smoother financing for transactions.
Empowering women remains a priority, as evidenced by a USD 50 million loan to InCred Financial Services Ltd. to support lending to women and women-owned businesses using a technology-driven approach to reach underserved entrepreneurs.
Additionally, Kaleidofin Capital Private Ltd. will receive a USD 5 million loan to expand financial products and services for underbanked women using an AI/ML-based credit scoring model.
DFC is also making strides in environmental sustainability. An USD 18 million loan to Mufin Green Finance Ltd. will help advance India's electric vehicle sector, while a USD 10 million loan to Nepra Resource Management Pvt. Ltd. will fund the construction of dry waste recovery and recycling plants, promoting a circular economy and reducing greenhouse gas emissions.
Climate-focused businesses will benefit from a USD 50 million loan to Northern Arc Investments IFSC Trust, which will finance projects in solar energy, e-mobility, green buildings, and sustainable agriculture.
Healthcare in India will receive a significant boost with a USD 20 million loan to Panacea Biotec Ltd., enabling the vaccine manufacturer to increase its production by 50 million doses annually for the hexavalent vaccine, protecting against six major diseases.
Financial inclusion initiatives are at the core of DFC's commitments. Satya MicroCapital Ltd. will receive a USD 20 million loan to expand its microfinance portfolio targeting rural and semi-urban women, and UGRO Capital Ltd. will receive a USD 40 million loan to support lending to small and medium-sized businesses, with a focus on new-to-credit borrowers.
Additionally, nearly USD 300,000 in technical assistance to Lok Capital IV LLC will help portfolio companies improve their impact in areas such as climate change adaptation, financial inclusion, and gender equity. (ANI)
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