Sindhuja Microcredit Raises $5 Million in Pre-Series D Round to expand lending operations
Sindhuja Microcredit, a new generation digital and rural-focused microfinance institution (MFI) providing financial services to self-employed women entrepreneurs, has raised $5 million (INR 47 crores) in a Pre Series D funding round. Existing investors Abler Nordic, GAWA Capital (through its vehicle Huruma Fund) and Oikocredit have participated in this round. The fund raised will be used to strengthen the company’s capital base, support business expansion, and further expand access to responsible credit for underserved communities.
Abhisheka Kumar, Co-Founder and Managing Director/Malkit Singh Didyala, Co-Founder and Chief Executive Officer, Sindhuja Microcredit said, "We are making significant progress in our mission in touching the lives of low-income women borrowers from underserved households as well as in making financial services accessible to the financially excluded and MSME entrepreneurs through efficient, customer-friendly and technology-enabled solutions. The latest funds will drive us to the next phase of growth by further expanding our footprint and strengthening our capability to serve our customers. We are grateful for the continued confidence shown by our investors."
Sindhuja Microcredit, in its eight years of operation, has provided microloans to over 500,000 self-employed women and microentrepreneurs across twelve states spanning Northern, Eastern, Southern and Western India. The company currently operates 366 branches with over INR 11 billion in Assets under Management (AUM). Serving ‘base of the pyramid’ clients, a majority of Sindhuja’s branches are located in rural and remote regions.
Commenting on the investment, Smriti Chandra, Abler Nordic’s Regional Director for Asia, said: "We are pleased with Sindhuja’s performance and are encouraged by the company’s continued progress. We remain confident in the management team's vision and execution and believe they have navigated the recent microfinance sector challenges with resilience. Our follow-on investment reflects our long-term commitment to supporting Sindhuja’s growth and impact."
Agustín Vitórica, Co-Founder of GAWA Capital, said: “At GAWA Capital, we are proud to deepen our support for Sindhuja Microcredit through this follow-on investment. Reaching smallholder farmers remains one of the biggest challenges in inclusive finance in India, given their exposure to climate shocks, income volatility, and the limited availability of financial products adapted to rural livelihoods. We have strong confidence in the team and in Sindhuja’s ability to address this challenge while scaling its impact among smallholder farmers in India, both through JLG products and through individual lending solutions tailored to farmers’ needs.”
Harsh Shah Head of Equity (Asia) at Oikocredit, added: “Sindhuja has demonstrated meaningful resilience through one of the most challenging cycles the Indian microfinance sector has seen in over a decade. Its focus on rural women entrepreneurs and commitment to responsible lending align deeply with Oikocredit's mission. We are pleased to continue supporting Sindhuja as the sector enters a phase of recovery."
Earlier, Sindhuja raised Series A funding from Carpediem Capital, which came in as the first institutional investor backing the company at an early stage while India’s financial sector was in the middle of the IL&FS (Infrastructure Leasing & Financial Services) crisis. The company raised Series B funding during the first phase of the COVID-19 pandemic and pre-series C in March 2023. Both rounds were led by Abler Nordic, with participation from Carpediem Capital. The Series C funding in March 2024 was led by Huruma Fund managed by Gawa Capital with participation from Oiko Credit
