Sindhuja Microcredit, the Noida-headquartered microfinance institution (MFI) focused on the rural sector, has raised $5 million (Rs 47 crore approx.) in a pre-Series D funding round from existing investors Abler Nordic, GAWA Capital, and Oikocredit.

Sindhuja Microcredit said it will use this funding to strengthen its capital base, support business expansion, and further expand access to responsible credit for underserved communities.

"We are making significant progress in our mission in touching the lives of low-income women borrowers from under-served households as well as in making financial services accessible to the financially excluded and MSME entrepreneurs through efficient, customer-friendly and technology-enabled solutions," said Sindhuja Microcredit founders Abhisheka Kumar and Malkit Singh Didyala in a joint statement.

According to Sindhuja Microcredit, in the last eight years of its operation, it has provided micro-loans to over 500,000 self-employed women and micro-entrepreneurs across twelve states spanning Northern, Eastern, Southern and Western India. It also provides business loans to traders, shopkeepers and farmers for working capital needs or for expanding their businesses.

This MFI currently operates 366 branches with over Rs 1,100 crore in Assets under Management (AUM).

On the investment into Sindhuja Microcredit, Smriti Chandra, Abler Nordic's Regional Director for Asia, said, "We remain confident in the management team's vision and execution and believe they have navigated the recent microfinance sector challenges with resilience."