07 June 2018, India:
Microfinance lender Annapurna Finance has raised 155 crore from private equity firm Oman India Joint Investment Fund (OIJIF).
The investment is a part of Oman India Joint Investment Fund II (OIJIF II) commitment to invest in total Rs 200 crore in Annapurna Finance over a period of time, the company said in a statement.
The company will use the fresh capital to diversify itself into newer asset classes and invest in technology to increase operational efficiency.
Gobinda Chandra Pattanaik, Managing Director and Chief Executive Officer said ,”With this new round of equity, we will be one of the best capitalized MFIs (microfinance institution) in the country.”
Pattanaik added, “We look forward to leverage the experience of OIJIF, along with our existing investors, to further strengthen our commitment towards inclusive growth. We are now committed to expand our offerings to our borrowers by venturing in new asset classes like SME and housing finance.”
Srinath Srinivasan, Chief Executive Officer, OIJIF said, “Over the years, the MFI industry in India has established itself as an integral part of the India’s financial services sector. Annapurna is uniquely positioned given its strong presence in East India and focus on rural customers, both of which have a low penetration of formal banking. We are excited to partner with Annapurna and the team led by Mr. Gobinda Chandra Pattanaik and Mr. Dibyajyoti Pattanaik in their next phase of growth.”
Unitus Capital acted as the investment banker for the current deal.
Annapurna Microfinance Pvt. Ltd (AMPL), a microfinance venture of people’s Forum which is more than two decades old development organization. It is a Non Banking Financial Company regulated by Reserve Bank of India. It is promoted by Mr. Gobinda Chandra Pattanaik (Member Secretary cum CEO of People’s Forum). It was previously named as Gwalior Finance & Leasing Pvt. Ltd & was involved in financing & leasing business.
(Image – Annapurna Finance)