Our Client Partners

For Our Borrowing and Originator Partners

We have a large and diversified base of originator and investor partners with demonstrated long-term relationships spread across six focussed sectors namely, microfinance, MSME finance, vehicle finance (includes commercial vehicle and two-wheeler finance), consumer finance, affordable housing finance and agricultural supply chain finance. Our partners share our commitment to provide financial access to the underserved and our growing partnership community has resulted in an expansion in opportunities for debt raising and investment for the emerging sectors.
Engaging closely with a large number of diverse partners across sectors has driven our business understanding across multiple geographies and cycles. Our focus on creating customized financing solutions to meet the varied funding needs of our partners, has opened the doors of financing for these sectors, that were not available a decade ago.

Our partner on-boarding process

List of potential clients by sector
Pre-due diligence filtering and evaluation
Due diligence process begins with detailed field visit and profiling of business and functions
Detailed report including but not limited to:
  • Governance
  • Management
  • Systems
  • Processes
  • Quantitative evaluation on the basis of underwriting guidlines and financial performance
  • Assignment of score
Report and score presented to Credit Committee
Post approval, partner becomes eligible for investments by Northern Arc Capital and its wide pool of investors

Cascading Network

The growing community of Originator Partners and Investor Partners coupled with our track record in diversified product offerings has resulted in an expansion in opportunities for debt raising, and therefore there has been a consistent growth in the number of new Originator Partners on our platform. This creates positive network effects and a diversified platform that is resilient through different economic cycles.

Since 2009, we have built partnerships with about 228 Originator Partners with whom we engage across multiple products through their life cycles to meet their funding requirements. We also partner with select Originator Partners to lend to retail borrowers.

These Originator Partners have been identified on the basis of a credit underwriting framework designed to identify and nurture financial firms that are close to their customers in the under-served credit segments, and in our assessment, have the ability to grow once provided with access to debt.

In addition to our large data lake, we also add insights from our on-field surveillance to Nimbus to allow for a comprehensive data repository. A combination of insights from the data lake and on-field surveillance enables us to carry out benchmarking of all our Originator Partners, current and potential, which is a key input in our credit decision-making process, portfolio stress testing, early warning indications. We also use these insights to routinely provide feedback to Originator Partners on process improvements, comparison with operational and financial industry benchmarks and expansion into newer geographies. Further, these insights are also used to publish blogs, conduct webinars for domestic and offshore investors, and publish detailed sector presentations.

Over the years, our investor engagement team has contributed to broadening the investor base of our Originator Partners and mid-market companies. In Fiscal 2013, the Columbia Business School included our microfinance securitization product as a case study to analyze how we enabled funding to microfinance institutions by tapping into a new class of capital markets investors including pension funds, mutual funds and bank treasury desks.