Fusion Microfinance, a Delhi-based NBFC and microfinance firm has raised INR 520 crores in Series E round of funding from PE firm Warburg Pincus. The funding round includes both a primary fundraiser and sale of equity by earlier investors including Incofin, NMI, BIO and SIDBI. Creation Investment, an existing investor in the firm also participated in the funding round.
The NBFC will use the freshly raised capital to selectively evaluate potential acquisition opportunities. Fusion Microfinance works closely with underprivileged women in the rural and semi-urban areas. The focus is to reach out to unbanked and provide financial services to women entrepreneurs belonging to the economically and socially deprived section of the society.
On the fundraising, Devesh Sachdev, CEO, and Founder of Fusion said,” This investment would support our endeavour to develop into one of India’s most preferred companies in the financial inclusion space.”
With the investment, Warburg Pincus marks its first investment in the microfinance sector in the country. Spark Capital advised the microfinance firm throughout the deal. Founded by Ashish Tiwari and Devesh in 2010, the firm has a loan book of whopping INR 5,000 crores.
With 500 branches across 200 districts in 18 states of India including Uttar Pradesh, Madhya Pradesh, Uttarakhand, Delhi, Haryana, Bihar, Jharkhand, Odisha, Punjab, Chhattisgarh, and Maharashtra, the firm has a portfolio of INR 2,050 crores serving over 1.3 million customers across the country.
Earlier in February this year, the firm has raised INR 80 crores from existing investors including US-Based PE firm Creation Investments, GAWA Capital and Oikocredit. Prior to that, Fusion Microfinance has raised series D funding of INR 162 crores from Creation Investments in August 2016.