HYDERABAD: Fusion Microfinance Private Limited on Tuesday said it has received Rs 500 crore funding from its existing investors —Warburg Pincus and Creation Investments Capital Management.“The follow-on investment by existing investors will help expand the capital base to support Fusion’s growth plans,” said Narendra Ostawal, managing director, Warburg Pincus.
The fresh round of capital injection will be used to expand its distribution network across the country, integrate technology solutions across key business lines and strengthen the platform to address untapped growth opportunities within the sector.
Fusion Microfinance established in the year 2010 and is one of the youngest players and is among the top 10 pure-play microfinance companies in India with more than 575 branches across 18 states. According to the company, its assets under management grew by 45 per cent in FY19 over the previous year and has an outstanding portfolio of about Rs 3,350 crore as on December 2019. It claims to have a well-diversified geographic portfolio with an emphasis on rural customers, who account for more than 92 per cent.
In December 2018, Warburg led a Rs 520 crore funding round, which was also its first investment in an Indian micro-financier. It may be noted that in 2016, the company raised over Rs 162 crore as part of its Series D equity financing round, which was led by Creation Investments and Gawa Capital. Besides, its other investors include development financing institution Belgian Investment Company for Developing countries (BIO) and The Netherlands-based global social impact investor Oikocredit.
“Fusion has been amongst the faster-growing companies in the sector over the last few years and is committed to maintaining a steady and sustainable pace at a much larger scale in the next three-five years. Building forth on a strong operating platform and strategic initiatives, we are well placed to become a valued company in the financial inclusion space,” said Devesh Sachdev, chief executive officer, Fusion Microfinance.