Piramal Alternatives, the fund management division of the Piramal Group, today announced an investment of ₹600 crore in Annapurna Finance Private Ltd, a non-banking finance company focussed on microfinance.

The deal involved a combination of secondary purchase of shares and providing Tier-2 capital. The structured capital solution will help fuel the risk calibrated growth of company’s assets under management.

Annapurna is one of India’s leading microfinance institutions headquartered in Odisha with assets under management in excess of $1.25 billion as on March 31, 2024. A pan-India player with presence in 20 states, the company has also diversified into MSME financing.

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Kalpesh Kikani, CEO, Piramal Alternatives, said: “Microfinance as a retail asset class has grown at CAGR of 32 per cent over the last decade and expected to continue the high growth trajectory. Further, it serves as a catalyst for economic development and stands as a cornerstone for a nation’s growth, fostering financial inclusion and prosperity. A seasoned player like Annapurna having traversed multiple cycles, is well positioned to capture the growth opportunity. Through Piramal Alternatives, we are committed to providing bespoke and value-accretive capital to support Annapurna’s growth aspirations in this promising sector.”

Gobinda Chandra Pattanaik, Managing Director and CEO, Annapurna Finance Private Ltd, said, “The growth capital from Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets. Credit penetration in microfinance continues to be low and with the right capital and partner, we can script a profitable growth story.”