Abhishek | Altius Investech
3 min readJun 20, 2024

🚀 Northern Arc: Bridging Finance for Inclusive Growth

Established in 2008, Northern Arc Capital Limited has emerged as a key player in the Indian financial services sector, dedicated to providing structured debt products to underserved sectors. Headquartered in Chennai, Northern Arc operates with a vision to bridge the gap between debt capital markets and the needs of underbanked populations.

In our latest blog post, we dive deep into the journey and achievements of Northern Arc. Here’s a sneak peek into what you can expect to learn.

Company Overview

Northern Arc Capital specializes in offering structured debt solutions, including securitization, bond issuance, and loan syndication, catering to a wide range of sectors such as microfinance, affordable housing, small business loans, and agriculture. The company’s dedication to financial inclusion and innovation has solidified its market leadership.

Key Facts:

  • Founded: 2008
  • Headquarters: Chennai, Tamil Nadu, India
  • Service Network: Operates across multiple states with a strong presence in both urban and rural areas
  • Core Services: Structured debt products, securitization, bond issuance, and loan syndication

Product Portfolio

Northern Arc offers a diverse range of financial products tailored to meet the needs of various sectors and promote inclusive growth:

  • Securitization: Facilitating the transfer of assets to create liquidity and manage risk.
  • Bond Issuance: Providing access to debt capital markets for underbanked sectors.
  • Loan Syndication: Pooling loans to spread risk and enhance lending capacity.
  • Direct Lending: Offering customized credit solutions to sectors like microfinance, affordable housing, and agriculture.

Financial Performance

Northern Arc’s financial health is robust, with impressive revenue growth and profitability, reflecting its strategic focus on innovation and risk management.

Financial Highlights (FY 2024):

  • Revenue from Operations: ₹1906 crore
  • EBITDA: ₹1163 crore
  • Profit After Tax: ₹317 crore

AUM by Sector

Recent Achievement

  • Partnerships with Leading MFIs: Northern Arc has forged strategic partnerships with leading microfinance institutions to enhance credit access for the underserved.
  • Innovative Financing Solutions: Launched new financial products to cater to the unique needs of small businesses and rural entrepreneurs.

Latest Funding

On April 22, 2024 — Northern Arc announced an investment from the International Finance Corporation, a member of the World Bank Group.

  • Investment Amount — $80Mn | Equal split of equity and debt, each contributing $40 million
  • Security type — 84,91,048 CCPS | Face value — ₹20 | Share price — ₹391 | Amount — INR 331 Crs

On 16th April 2024, a private placement offer to RJ Corp

  • Security type — 12,78,772 CCPS | Face value — ₹20 | Share price — ₹391 | Amount — INR 50 Crs

Conclusion

Northern Arc Capital Limited continues to lead the financial services industry with its innovative solutions, robust financial performance, and commitment to financial inclusion.

Explore More

For a detailed exploration of Northern Arc’s journey, product portfolio, financial performance, and industry insights, read the full blog post on our website.

🔗 Read the Full Blog Post Here: Northern Arc Capital Limited Company Detail: Financial Information , IPO Plans & Latest Share Price

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