Intellecap backed microfinance platform Arohan raises INR 60 crore from Tano Capital
Microfinance institution major in eastern India Arohan has raised $10 million (approx Rs. 60 crore) by Tano Capital, an alternate asset management firm founded in 2004 by Chuck Johnson, formerly Co-President of Franklin Templeton Investments and CEO of Templeton Worldwide Inc.
The company is the second largest Kolkata based NBFC MFI in the country. Arohan has assets under management across 104 branches spread over 38 districts of four states of West Bengal, Bihar, Jharkhand and Assam.
Piyush Goenka, Investment Director, Tano Capital said “Arohan is our first microfinance investment in India till date and given our demographics,believe that Financial Inclusion will be a big play in years to come.The Intellecap group has done pioneering work since 2007 in the sector and we are delighted to be working with them.”
Small and medium sized MFIs may now see more equity capital infusion from mainstream investors. Arohan’s unique value proposition of organic & inorganic growth with its focus on the underserved markets in the low income states of the east, north East and central India, its operational,management strength & corporate governance standards have helped attract mainstream capital.
Its parent company Intellecap adds to its strength with an enabling ecosystem of sister companies which operate in diverse social enterprise related ventures from advisory to networks and capital.
Speaking on fundraise, Manoj Kumar Nambiar, MD, Arohan said, “We are delighted to get Tano on board as an investor in Arohan.The enhanced net worth will help us implement our growth plans in the 10 low income states starting with Odisha.We offer a wide product suite on the credit side,provide insurance & micropension products to our clients and will soon start liability products as a BC of partner banks.”
The Tano equity raise set the tone for more mainstream investors to look at microfinance, and ultimately development focused enterprises, as sustainable, long term ventures which have the potential to create win-win-win situations for society, the company and its investors.
The MFI sector in India (over INR 35,000 crores of outstanding portfolio across 35 million clients) serves the underserved and the most financially excluded sections of the society.
Website: Arohan
