Incofin, Maj Invest infuse $13M into SAVE Group for rural financial empowerment

Incofin India Progress Fund and Maj Invest have invested $13 million in SAVE Group, a rural financial services company, through their Incofin India Progress Fund and Maj Invest Financial Inclusion Fund III K/s.

In March 2024, Maj Invest Financial Inclusion Fund III K/s invested $3 million in SAVE Solutions, the holding company of SAVE Group, while IPF invested $10 million in SaGgraha Management Services, a subsidiary of SAVE Group specialising in microfinance loans for rural communities.

It plans to infuse the capital to expand its lending verticals through its subsidiaries, offering microfinance loans, secured MSME loans, and affordable housing loans.

“We are excited about the opportunity to invest in SAVE Solutions and recognise their potential to revolutionise rural finance on a large scale. Together, we aim to amplify the impact of financial inclusion initiatives, empowering communities nationwide,” said Siva Vadivelazhagan, Director at Maj Invest.

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Founded in 2009, SAVE Group focuses on providing accessible and high-quality financial services to underserved rural communities. It has 522 branches across 17 states, and in March 2024, it reported an asset under management of about Rs 1,962 crore, with a target of Rs 18,000 crore within five years.

Meanwhile, SaGgraha reported "a BC AUM of Rs 464 crore and a Co-lending AUM of Rs 546 crore", managed for SAVE Microfinance, with 237 branches across 7 states. It expects an AUM of Rs 5,000 crore in the next five years.

“We are delighted to partner with Incofin IPF and grateful for Maj Invest’s continuous support. Beyond strengthening our ability to expand our loan book, this infusion emboldens our pursuit of delivering high-quality financial services in the rural underserved segment," Ajeet Kumar Singh, Co-founder and Director of SAVE Solutions Private Limited, said.

"We will benefit immensely from Incofin’s and Maj Invest’s global experience and value creation and eagerly anticipate our collaboration with them," he added.