Fusion Microfinance on Tuesday announced that it has raised Rs 520 crore in its latest round of funding led by global private equity firm Warburg Pincus.
The fifth round of funding also saw some of the early investors such as Incofin, NMI, BIO and Sidbi exiting the Delhi-based microfinance institution (MFI).
“There have been five rounds of funding since inception in 2010. With this round, the cumulative amount raised is Rs 852 crore,” Devesh Sachdev, CEO and founder of Fusion Microfinance, told The Telegraph.
Fusion is a rural MFI with a pan-India presence through 500 branches across 200 under-developed districts in 18 states of the country.
As of September, it has an outstanding portfolio of Rs 2,050 crore, catering to more than 1.3 million customers across 18 states.
For Warburg Pincus, which has invested more than $68 billion in over 825 companies in more than 40 countries, this marks the first investment in the microfinance sector in India.
“Fusion has demonstrated the ability to profitably scale up in a diversified manner. The company is led by a very talented team,” said Narendra Ostawal, managing director of Warburg Pincus.
Fusion feat
- Fifth round of funding worth Rs 520 crore led by Warburg Pincus
- Total money raised so far: Rs 852 crore
- As of September, loan book of Rs 2050 crore
- MFI exploring acquisitions