Northern Arc Capital is a non-banking finance company that secured Rs 229 crore from Marquee anchor investors ahead of its Initial Public Offering round. The company plans to use this fresh capital to scale its operations and improve its platform. The funding round saw the participation of several anchor investors including SBI General Insurance Company, Reliance General Insurance Company, Goldman Sachs, Quant Mutual Fund, and Kotak Mahindra Life Insurance Company.
The board has approved a resolution to allot 87.02 lakh equity shares at an issue price of Rs 263 each to 15 funds with an upper price of the public offer. According to the company filing, the lending firm plans to use these fresh proceeds for working capital and market expansion. The company provides business loans and household loans. The startup also offers fund management and market research services. The startup has secured over 283 million USD across multiple funding rounds since its inception, including $75 million raised from FMO during its conventional debt funding round. This investment shows investors’ trust in Northern Arc’s market potential and business model.
The company claims to have financed over Rs 1.5 trillion across India since its inception. The NBFC firm provides credit facilities to startups, financial institutions, MSMEs, and Indian households. The company plans to strengthen its platform, make it more secure, and expand its services. The company reported a 44 percent increase in its revenue to Rs 1,890 crore in FY24. However, the profit stood at Rs 317.69 crore in the same duration. Northern Arc Capital faces competition from other loan providers such as Mahindra Finance, Aditya Birla Capital, and Manappuram Finance.
The startup offers clients personalized loaning options, including house and business loans. The investment will help the startup expand its services and provide greater value and experience to its customers and investors. The Northern Arc Capital operates with a risk management framework that uses advanced technologies, and quantitative data analysis. The company intends to open its Rs 777 crore IPO round for public subscription on 16 September. The IPO round is a mix of fresh issue of equity shares worth Rs 500 crore and an offer for sale comprised of Rs 277 crore worth 10,532,320 equity shares. The aggregate issue size is around Rs 777 crore. Inc42 reported.
Conclusion :
Northern Arc is a Chennai-based startup offering a loaning and fund Management platform for faster and more secure investments. The startup got fresh capital of Rs 229 crore from Marquee anchor investors with the participation of SBI General Insurance Company, Quant Mutual Fund, and Kotak Mahindra Life Insurance Company.
The company plans to use this amount to scale its operations, meet general corporate and market capital purposes, expand to the global market, and develop market presence. The startup claims that it uses qualitative and quantitative data analysis for a better user experience. The company allocated 87.02 lakh equity shares to 15 funds at an issue price of Rs 263 per share, aggregating the target prize of Rs 229 crore.
