Micro lender, Fusion Microfinance revealed that it has now secured INR 500 crore from the global private equity major Warburg Pincus and Impact Investor Creation Investments.
The lender, incorporated in 2010, is looking to expand its distribution footprint beyond the present 18 states and invest in technological tools, said the announcement.
The New Delhi headquartered company uses the joint liability group model, which is developed by Grameen Bank in Bangladesh, to give loans of around INR 50000.
Speaking about the funding, Devesh added,
“We are honoured by the trust that our investors have laid on us. The follow-up investment by Warburg Pincus and Creation Investment reflects their faith in Fusion’s ability to harness rural India’s incredible growth story. Fusion over the last few years is committed to maintain a steady and sustainable pace, and take it to 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.”
“The follow-on investment by existing investors will help expand the capital base to support Fusion’s growth plans. We continue to be impressed with the management team and look forward to supporting them in their endeavours.”