MSME-focused listed gold loan non-banking finance company TruCap Finance has secured Rs 400 million non-convertible debenture from the sustainable investment fund, responsAbility AG. TruCap Finance(TRU) announced the approval and allotment of 4,000 secured, listed, rated, and redeemable Non-Convertible Debentures(NCDs) to responsAbility AG for Rs 400 million.

responsAbility AG founded in 2003, is an impact-driven sustainable investment house with a special focus on climate finance, financial inclusion and sustainable food to achieve positive movement towards UN Sustainable Development Goals (SDGs). With an AUM over USD 4.7 billion diversified across 70 countries through more than 270 high impact companies in its portfolio, responsAbility has deployed over USD 14.2 billion to empower beneficiaries across the globe.

The funds raised from this issuance will be deployed by TruCap to facilitate growth capital access for small businesses in MSME hubs, with a particular emphasis on empowering nano lenders, fostering financial inclusion, and providing working capital to underserved enterprises.

Rohan Juneja, MD & CEO of TruCap Finance Limited, said, ” As a rapidly expanding NBFC, we have a robust presence in semi-urban and rural areas, serving the unique capital needs of small enterprises. With cumulative disbursements exceeding Rs 25 billion to over 2.5 lakh nano entrepreneurs, including women-led ventures and new-to-credit customers, we are pleased to partner with responsAbility in our mission to foster sustainable livelihoods and enhance long-term financial prospects of small businesses.”

Ms. Aakanchha, Investment Officer- responsAbility Investments AG said, “We are delighted to collaborate with TruCap to accelerate growth opportunities for micro-entrepreneurs and support women-led ventures. As a growing NBFC, TruCap truly has the potential to significantly enhance financial inclusion and we are pleased to facilitate and support them in their growth journey.”

As of September 2023, TruCap built an AUM surpassing Rs 7.8 billion supported by a robust partner ecosystem under its Lending-as-a-Service (LaaS) model, compared to Rs 0.6 billion in September 2020 representing a CAGR of 135%. During the same period, TruCap has expanded its active customer base from 1,318 in September 2020 to 80,552 in September 2023 demonstrating robust and granular loan growth with sixty-one times growth in borrower count.

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