Non-banking finance company Northern Arc on Thursday announced its plan to acquire the microfinance business of S.M.I.L.E. Microfinance through a slump sale.
The transaction will involve the takeover of the microfinance portfolio of S.M.I.L.E., along with its extensive network of nearly 150 branches catering to over two hundred thousand customers. Around 850 employees of S.M.I.L.E. will move to the rolls of the Northern Arc group.
The acquisition will help the Northern Arc group hasten its lending business in the rural pockets, where it plans to offer small ticket loans through a digital platform.
“SMILE is one of the pioneers of the microfinance sector in south India and we intend to take advantage of their rural penetration and long-standing customer relationships to build and scale this business quickly,” Kshama Fernandes, MD and CEO at Northern Arc, stated in the release.
The microfinance lender had its gross loan portfolio at Rs 343 crore at the end of December 2021.