Northern Arc Capital Listed Investor

We act as a bridge between high quality debt issuers in the financial inclusion space and capital markets.

Over the last decade, Northern Arc has created a strong platform, which enables access to debt capital for emerging sectors.

A diversified financial services platform catering to the credit requirements of under-served small businesses and households in India

A diversified financial services platform catering to the credit requirements of under-served small businesses and households in India

Our partnership with Northern Arc is a key component of our strategy to harness private sector expertise and finance in reaching millions of MSMEs and mid-market companies through innovative products.

We act as a bridge between high quality debt issuers in the financial inclusion space and capital markets.

Northern Arc's direct-to-customer consumer finance business reports a 70% repeat customer rate, reflecting a relationship built for renewal and cross-sell rather than one-off lending.

Borrowers are serviced through a mix of self-service digital touchpoints (customer app, WhatsApp, BBPS-enabled payments) and assisted channels (CRM platform, call center) across the loan lifecycle.

Individual investors and family offices self-onboard on AltiFi through a fully online KYC process, after which they can filter opportunities, invest and track holdings digitally without needing a relationship manager.

Northern Arc builds long-term, dedicated technology partnerships with banks such as Karnataka Bank and DCB Bank through its nPOS platform, enabling those banks to co-lend and onboard multiple NBFC/fintech originators on an ongoing basis.

Northern Arc operates 369 branches as part of a multi-channel distribution model (branches, digital, partnership) used to source direct-to-customer MSME, consumer, and rural finance customers.

Alongside branches, Northern Arc sources direct-to-customer loans digitally and through 54 retail lending partners, forming the 'Digital' and 'Partnership' legs of its distribution model.

Northern Arc distributes structured securitizations, pooled loan deals and bespoke debt transactions from partner NBFCs to banks, mutual funds and institutional investors through its proprietary Nimbus platform.

AltiFi.ai is Northern Arc's end-to-end digital channel through which retail investors, family offices, HNIs and corporate treasuries can directly browse and invest in bonds, securitized instruments and AIF units, with tickets as low as INR 10,000.

We understand these sectors, do our due diligence and take exposure to the subordinated tranche.

This is significant milestone for Northern Arc..the capital will allow us to significantly scale-up the existing business and pursue new opportunities.

NuScore is Northern Arc's machine-learning-based underwriting solution that gives originators a borrower-level credit score and analytics report, custom-built per lending institution and integrated via APIs.

nPOS connects banks and financial institutions with NBFC/fintech originators through APIs, enabling swift data exchange and straight-through processing of co-lending and sole-lending loans.

Nimbus is Northern Arc's proprietary digital rail for structuring and executing capital markets and securitization transactions, underpinning its Placements business.

AltiFi.ai is Northern Arc's wholly owned digital platform (via subsidiary Northern Arc Securities) for distributing bonds, securitized instruments and AIF units directly to retail and HNI investors, built on 12+ years of proprietary risk models.

The investment marks the beginning of a long-term relationship with IFC and other multi-laterals who believe in the India story and Northern Arc playing an instrumental role in India's growth story through financial inclusion.

Northern Arc has INR 10,081 Cr worth of assets under management and counts investors like Sumitomo Mitsui Banking Corporation, LeapFrog, 360 ONE (formerly known as IIFL), Accion, Augusta Investments (known as Affirma Capital), Dvara Trust and Eight Roads (proprietary arm of Fidelity) among its backers.

Northern Arc earns interest income on loans held on its own balance sheet across MSME, consumer and rural finance; net interest income grew 33% YoY to INR 1,147 Cr in FY25.

Northern Arc earns a net fee of 20-25 basis points for structuring and syndicating financing (securitizations, pooled loans/bonds) for its Originator Partners and placing them with 200+ investor partners; cumulative placement volume exceeds INR 1 trillion since inception.

Through its fund management business, Northern Arc has managed 12 credit funds and 3 PMS products (6 funds + 3 PMS currently active), earning a net management fee of 100-110 basis points on fund AUM.

Northern Arc packages its proprietary underwriting and co-lending technology, NuScore and nPOS, as SaaS offerings for other originators, banks and financial institutions, diversifying revenue beyond balance-sheet lending and fees.

Northern Arc's operating expense ratio improved by 40 basis points year-on-year to 3.6% of AUM in FY25.

Credit cost -- provisioning for expected loan losses -- was INR 405 Cr for FY25 (INR 194 Cr in Q4FY25 alone), one of Northern Arc's largest disclosed cost lines alongside funding costs.

As a debt-funded NBFC, Northern Arc's largest cost is interest paid on borrowings; incremental cost of funds was 9.3% in FY25, easing to 8.7% in Q1FY26 as rates softened.