New Delhi, March 5 -- Germany's Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and Citi have jointly provided a $76 million (around Rs 696 crore) co-financing package to Shriram Finance.
Under the co-financing loan structure, DEG has provided a loan of 40 million euros (around Rs 425 crore), while Citi has lent Rs 260 crore to Shriram Finance, a press note said. Citi acted as a lead arranger and coordinator for the financing.
The DEG loan will support lending to micro, small and medium enterprises (MSMEs), electric vehicle (EV) buyers, women borrowers and customers in underserved areas that will enable access to formal credit through Shriram's strong networks across India. Citi's financing will support smallholder farmers, a segment critical to India's food security and rural economy.
This marks the second collaborative financing initiative between Citi and DEG. In 2024, the microfinance company had raised 25 million euros from DEG, and Rs 170 crore from Citi through a co-financing facility.
"This funding will enable us to support small businesses, women entrepreneurs, EV adoption, and small landholding farmers-segments that form the backbone of India's growth story," Umesh Revankar, executive vice chairman, Shriram Finance said.
"Our deep presence in rural and semi-urban India positions us uniquely to channel this capital to customers who need it most," he added.
Recently, the non-bank lender had raised $250 million in debt from an offshore investor.
In late 2025, Japan's MUFG Bank had picked up a 20% stake in Shriram Finance for Rs 39,618 crore ($4.4 billion), making it the largest foreign investment in India's financial services segment. MUFG Bank has acquired the stake in the non-bank lender via a preferential allotment of shares.
Established in 1979, Shriram Finance offers a wide range of products including loans for commercial vehicle and farm-equipment purchases, to MSMEs, for gold buying and for working capital. The company operates 3,225 branches.
The company's net profit fell 8.4% year-on-year(y-o-y) to Rs 6,985 crore in the first nine months of FY26. The asset under management stood at Rs 2.9 trillion as on December 31.
Published by HT Digital Content Services with permission from VC Circle.