Fusion Microfinance which works closely with women has raised Rs 162 crore from US-based private equity firm Creation Investments in a fourth strategic round (Series D) of funding. The firm works on a social vision and business orientation which aims to provide underprivileged women with economic opportunities to transform the quality of their lives
Other investors which participated in the funding included a new investor GAWA and existing investors BIO and Oikocredit, the microfinance institution said in a statement today. The funding will help Fusion Microfinance to continue its organic growth momentum as well as consider interesting inorganic opportunities in the microfinance and new products, it said.
Devesh Sachdev, chief executive and co-founder of Fusion said,
The microfinance sector shows substantial opportunities with a positive regulatory landscape and a strong push for financial inclusion from the Central government. The long-term nature of our strategy enables us to target these opportunities. The fresh funds will help us in capitalising on this potential through organic and inorganic growth, he added.
The current round also facilitated the partial exit of Incofin, an early investor in the company. The company is looking to enhance its team as well as adopt technology in a larger scale to reduce lending rates and bring down operational cost, the release said.
Fusion Microfinance had raised Rs 53 crore last year in June in Series C funding which was led by BIO and Oikocredit. The company has a strong presence in North Central India with 100 per cent women client base in rural and semi urban areas, it claims.
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Fusion Microfinance was started in early 2010 and in last six years has established network in 11 states like Uttar Pradesh, Madhya Pradesh, Uttarakhand, Delhi, Haryana, Bihar, Jharkhand, Odisha, Punjab, Chhattisgarh and Maharashtra.