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Microfinance firm Satin Creditcare Network Ltd. has received a Rs 25 crore investment in the second tranche from private equity player Florintree Ventures LLP through the conversion of around 41.02 lakh fully convertible warrants.

The stock rose by over 2 percent in morning trade following the announcement.

The investment will support the microfinance lender in its planned expansion, portfolio growth, and its efforts in increasing financial inclusion through its operations in 23 states.

Florintree committed a Rs 100 crore investment in the form of 1.23 crore fully convertible warrants through preferential allotment in January 2022.

The private equity player had invested Rs 25 crore at the time of issuance of fully convertible warrants. The balance amount of Rs 50 crore will be paid by July 2023.

Florintree Ventures LLP is a growth-stage private equity firm that invests in technology-backed firms and is led by former Blackstone India Head Mathew Cyriac.

According to HP Singh, Chairman and Managing Director, with the fund infusion, the microfinance lender is well poised to have a comfortable capital position. It is out of the pandemic woes and on a strong footing and treading the growth path.

Satin Creditcare also offers a bouquet of financial products in the Non‐MFI segment, consisting of loans to MSMEs, a housing finance subsidiary, business correspondent services, and similar services to other financial institutions.

Shares of Satin Creditcare are trading 1.78 percent higher at Rs 156.95.

(Edited by : Rukmani Krishna)