UC Inclusive Credit (UCIC), backed by Aarin Capital led by TV Mohandas Pai, has secured $8 million in equity from Insitor Partners based in Singapore to fuel its startup financing operations.
The non-banking finance company is set to raise an additional $1 million from existing investors, totaling approximately Rs 73 crore in local currency.
“The tremendous growth of early-stage companies in India warrants increased debt flow in this space. We are raising this equity to leverage our balance sheet further by borrowing more from existing and new lenders,” UCIC co-founder and managing director Abhijit Ray said.
Since its establishment in 2019, the lender has provided approximately Rs 1700 crore in disbursements to 225 companies. Simultaneously, the outstanding portfolio now amounts to Rs 570 crore, with Aarin Capital among its early investors.
Unitus Capital, a major stakeholder, promotes and predominantly owns UC Inclusive Credit (UCIC). Unitus Capital has successfully mobilized over $4 billion in funds for more than 200 companies engaged in impact sectors. Former RBL Bank chairman Narayan Ramachandran serves as one of the initial investors and the chairman of UCIC.
“UCIC is disrupting the early stage small ticket debt funding space for SMEs, where banks and most other financial institutions do not lend. Filling this gap is critical to the financial infrastructure of the economy,” said Nicholas Lazos, co-founder and chief investment officer at Insitor Partners.
The investor operates with two funds, Insitor Impact Asia Fund I and II, boasting a combined fund size of $85 million. Additionally, there is a $10 million Insitor Seed Fund. The investor’s primary focus has been on early-stage Indian companies, extending its presence to three other South Asian nations: Cambodia, Pakistan, and Myanmar.
Within India, the investor has invested in 15 companies to date. It holds active investments in eight companies, including EduBridge, Farmley, iDrishti, Medkart, and WorkIndia, with a cumulative exposure of nearly $30 million.
