SBFC Finance Secures INR 4,000 Mn from BII to Empower MSMEs and Women Entrepreneurs The funding aims to bolster access to finance for low-income MSMEs and women entrepreneurs, fostering business growth and enhancing economic opportunities.
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SBFC Finance, a financier for Micro, Small, and Medium Enterprises (MSMEs), has secured INR 4,000 million in financing from British International Investment (BII), the UK's development finance institution and impact investor.
The funding aims to bolster access to finance for low-income MSMEs and women entrepreneurs, fostering business growth and enhancing economic opportunities.
The proceeds from the funding will be divided equally, with half supporting entrepreneurs from low-income households and the other half targeting women borrowers. This strategic investment is expected to benefit up to 5,000 customers, enabling them to strengthen their businesses, increase income levels, and support their families better.
Founded in 2017, SBFC Finance specialises in secured MSME loans, loans against gold, affordable home loans, and loan management. Operating across 16 states and two Union Territories, the company has established a robust network of 197 branches in 157 cities, reaching underbanked populations in Tier II and Tier III cities.
With over 90,000 customers served, SBFC plays a pivotal role in formalising India's informal business sector. The company claims to boast INR 8,148 crores in Assets Under Management and recorded a Profit After Tax of INR 251 crores in the first nine months of FY25.
Narayan Barasia, CFO of SBFC Finance, said, "SBFC is in a unique business of empowering MSMEs to accomplish their dreams, and we are very happy to partner with BII on this journey. This fundraise will help us support more low-income entrepreneurs and women who want to make a difference in society. Access to credit remains a challenge in rural and semi-urban India, and this partnership will serve as a catalyst for empowering these borrowers."
Gaurav Malhotra, Director for Financial Services at BII, added, "We are delighted to partner with SBFC through this commitment, which is designed to empower low-income and women entrepreneurs in India. These underserved groups often face significant barriers to accessing finance. This partnership underscores our commitment to driving inclusive development and supporting the resilience of MSMEs across India."
Notably, SBFC Finance is 2X qualified, meeting the global industry standard for investments that promote women's economic empowerment. Since its launch at the G7 Summit in 2018, the 2X initiative has mobilised over USD 33 billion to advance gender equality and support women's economic growth.
