Comments
Fincare Business Services Ltd, a rural-centric financial inclusion platform, has raised Rs 500 crore from private equity investors TA Associates, True North, Tata Opportunities Fund and LeapFrog Investments.
A number of financial institutions, including SIDBI, Kotak Mahindra Old Mutual Life Insurance Ltd and Edelweiss Tokio Life Insurance, were also part of the funding.
Fincare is an umbrella holding company of microfinance firms such as Disha Microfin, Future Financial Servicess and Lok Management Services Pvt Ltd. Disha Microfin had received RBI’s in-principle approval to operate as a small finance bank.
Following the investment, Indium, an investor in Fincare group companies since 2010, will remain as a shareholder in the platform, along with Fincare management and promoters of the group companies. Edelweiss Financial Services was the exclusive financial advisor to Fincare on the transaction.
“Today’s announcement will enable us to continue to build the infrastructure required to accelerate our growth, in line with our mission to facilitate a lifetime of progress at the base of the pyramid through financial and social inclusion,” said Rajeev Yadav, Group CEO, Fincare.
India is one of the fastest growing emerging economies, with a developed financial sector. However, there is significant progress to be made in financial inclusion. According to the World Bank, just six per cent of adults over the age of 15 have borrowed from a financial institution, while only nine per cent have accessed credit for a farm or business.
“Over the last six years, we have been witness to the remarkable transformation of a small micro finance business emerging from the Andhra crisis into a high quality technology driven, professionally managed, diversified financial services business focused on rural customers. We are excited to be part of Fincare’s next phase of transformation into one of the most admired small finance banks in the country,” Divya Sehgal, Partner, True North, said.
Fincare is one of the fastest-growing microfinance platforms in India, reporting a 79 per cent annual growth rate in its assets under management over the last three years. Its primary product, a joint-liability group loan, reaches over 12 lakh customers, 95 per cent of whom are based in rural areas. The platform operates over 270 offices in seven states in South and West India.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.