Northern Arc Capital Ltd, formerly known as IFMR Capital has invested Rs 350 Crore/ $48.3 million from Shriram Transport Finance Company Ltd debt funding. The money raised from this deal will be used to provide support to small road transporters, first-time truck buyers, and driver-turned-truck owners. The focus will be on those impacted by the pandemic.
Chennai-based Northern Arc Capital caters to the under-banked section in India. It had also invested Rs. 165 crores along with Northern Arc Capital, Vivriti Capital, and 16 others in Slice, a credit and payment start-up. Earlier this month, BharatPe raised Rs 50 crore from Northern Arc Capital. The company is backed by private equity investors including Accion, Affirma Capital, Leapfrog, and IIFL. In 202, it has received debt financing from social impact investors and global development finance institutions like Asian Development Bank, US International Development Finance Corporation, and Calvert Impact Capital, among others.
Shriram Transport Finance is a daughter company of Shriram Capital, which comes further under the Shriram Group. As of 31st March, it has assets under management to the valuation of Rs 1,11,725 crore.