MUMBAI :
Delhi-based Fusion Microfinance Pvt Ltd, on Tuesday, said it has received an investment worth ₹500 crore from existing investors Warburg Pincus and Chicago-based Creation Investments Capital Management Llc.
The latest capital infusion would be used to grow its distribution network in India, integrate technology solutions across key business lines and strengthen the platform to address untapped growth opportunities within the microfinance sector.
“The follow-on investment by existing investors will help expand the capital base to support Fusion’s growth plans,” said Narendra Ostawal, managing director of Warburg Pincus.
In December 2018, Warburg had led a ₹520 crore funding round in Fusion, which also marked Warburg’s first investment in a microfinance firm in India.
Founded by Devesh Sachdev in 2010, Fusion served nearly two million clients through its team of more than 5,500 people in over 575 branches spread across 18 states in the country, as of year ended 31 December. The micro-lender’s assets under management stood at ₹3,350 crore and about 92% of it focused on rural customers.
“Fusion has been amongst the faster growing companies in the sector over the last few years and is committed to maintain a steady and sustainable pace at a much larger scale in the next 3-5 years. Building forth on a strong operating platform and strategic initiatives, we are well placed to become a valued company in the financial inclusion space,” said Sachdev.
In August 2016, the firm had raised ₹162 crore in its Series D equity financing round, led by Creation Investments and Spain’s Gawa Capital. The company also counts development financing institution, Belgian Investment Company for Developing countries (BIO) and The Netherlands-based global social impact investor Oikocredit, as its investors.
Source: Livemint
