Satin Creditcare Network Limited has announced the launch of SGAL-Scheme 1, a ₹200 crore Category II Alternative Investment Fund by its wholly owned subsidiary Satin Growth Alternatives Limited (SGAL). The fund received SEBI registration on April 13, 2026, and is now targeting its first close with strong soft commitments already secured.

Fund Details and Strategic Focus

SGAL-Scheme 1 represents a differentiated approach within the Category II AIF space, focusing on businesses around inclusion, sustainability, and grassroots impact. The fund will deploy capital through innovative quasi-equity and debt instruments, balancing downside protection with equity upside potential.

Leadership and Management

The fund will be led by Ms. Shivika Sethi, Partner at SGAL since October 2025, bringing approximately 14 years of experience in venture capital and consulting. Having previously managed two $100 million funds and led numerous investments, she will spearhead the fund's operations and investment strategy.

Strategic Advantages

Leveraging Satin Creditcare Network's extensive presence across 550+ districts, SGAL-Scheme 1 offers superior portfolio sourcing through grassroots-level vetting of high-potential businesses. The fund aims to empower women-led and women-focused businesses, enabling greater financial inclusion and unlocking opportunities at the last mile.

Management Commentary

Dr. HP Singh, Chairman cum Managing Director of Satin Creditcare Network Limited, expressed excitement about supporting disruptive and high-potential businesses through this initiative. He emphasized the fund's alignment with the company's commitment to fostering inclusive and sustainable growth while creating leadership opportunities for the team.

Ms. Aditi Singh, Director SGAL and Chief Strategy Officer SCNL, highlighted the fund's unique quasi-equity and debt thesis, combined with deep structuring expertise and SCNL's grassroots reach. She noted that the strategy is designed to provide flexible, growth-oriented capital to enterprises often underserved by traditional financing options.

Company Background

Satin Creditcare Network Limited operates as a leading microfinance institution with presence in 26 states, 5 union territories, and over 100,000 villages. As of December 31, 2025, the Satin group maintained 1,987 branches with 18,240 employees, serving 32.7 lakh clients across its various business segments.

Satin Creditcare Network Limited has delivered strong financial performance in FY26, demonstrating sustained growth across key operational metrics. The microfinance institution reported significant improvements in asset quality and operational efficiency while expanding its customer base and branch network.

Strong Asset Growth and Disbursement Performance

The company achieved robust growth in Assets Under Management, with consolidated AUM reaching ₹15,275 crores as of March 31, 2026, representing a 19% year-on-year increase from ₹12,784 crores in the previous year. On a standalone basis, AUM grew 14% to ₹12,933 crores.

Disbursements showed equally strong performance, growing 17% year-on-year to ₹12,516 crores on a consolidated basis during FY26. The fourth quarter was particularly strong, with consolidated disbursements of ₹4,422 crores, marking a 43% increase compared to Q4FY25.

Improved Asset Quality and Cost Metrics

The company demonstrated significant improvement in credit quality, with credit costs for FY26 falling to the 3.8%-4.0% range, compared to 4.6% in FY25. This improvement reflects better risk management and collection efficiency. The X-Bucket collection efficiency for March 2026 stood at approximately 99.9%, indicating strong recovery performance.

Operational costs also benefited from improved efficiency, with the Marginal Cost of Borrowing reducing by 49 basis points year-on-year, enhancing the company's profitability prospects.

Network Expansion and Customer Growth

Satin Creditcare continued its expansion strategy during FY26, adding 392 new branches throughout the year, including 25 branches in Q4FY26. The total branch count reached 1,841 as of March 31, 2026, while consolidated branches stood at 2,015.

The customer base expansion was equally impressive, with 7,39,501 new borrowers added during the financial year. In Q4FY26 alone, the company onboarded 2,46,281 new borrowers, demonstrating strong market penetration.

Funding and Sustainability Initiatives

The company successfully raised approximately ₹10,830 crores through various debt instruments during FY26, reflecting strong institutional credibility and market confidence. This funding supports the company's growth trajectory and expansion plans.

In a notable achievement, Satin Creditcare earned a debut score of 59 in the S&P Global Corporate Sustainability Assessment, highlighting its commitment to sustainable business practices and environmental, social, and governance (ESG) standards.

The company's business update was filed under Regulation 30 of the SEBI Listing Regulations, with all figures being provisional and unaudited, subject to review by statutory auditors.