Muthoot Pappachan Group-owned Muthoot Microfin (MML) has raised ₹130-crore capital for its micro-finance business from Chicago-based PE fund Creation Investments.
Post-infusion, Creation will hold 11 per cent stake in Muthoot Microfin. The capital so raised will be utilised to serve BoP clients and to expand business to newer geographies, such as Bihar, Uttar Pradesh, Odisha, Chhattisgarh, Haryana and Punjab in addition to the 10 existing States.
MML proposes to open 500 new branches in the next three years to expand its footprint pan-India.
Promoters’ capitalThomas Muthoot, Executive Director, Muthoot Pappachan Group, said the promoters have committed to infuse ₹150 crore capital by March 2018. The capital raised through the PE will be used for adoption of modern technology and to promote digitisation.
MML has a micro-finance customer base of 13 lakh. In FY17 (till December 2016), the company has extended loans to over four lakh rural households.
According to Sadaf Sayeed, CEO, Muthoot Microfin, the company has set a scorching pace of growth with assets under management (AUM) growing at 122 per cent and profit at 222 per cent over the last one year.
MML aims to reach ₹10,000 crore of AUM by March 2020 and a client base of four million households in the next three years from 1.3 million now.
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