Targets to grow loan portfolio by 60% in FY19
Fusion Microfinance, a leading Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in India, has raised INR 80 crore in its latest round of funding. The round was funded by existing investors Creation Investments, Oikocredit and GAWA Capital.
The funding will help Fusion Microfinance to continue its growth momentum through expansion in its network, infrastructure capacity ramp up and growing employee base of 3000 employees. Speaking on the funding, Devesh Sachdev, CEO and Founder of Fusion said, “We have been able to maintain a healthy growth rate and are bracing ourselves up for the next phase of expansion. This is reflected in our investors continued faith on Fusion and its potential. Demonetization effects have almost phased out and we are looking at a promising growth phase in the coming year. We plan to increase our loan book by 60% to INR 2400 crore in 2018-19. The fresh funds will be instrumental in capitalizing on new opportunities and help us reinforce our infrastructure including integration of latest technology to bring down overall operational costs. I also thank all my stakeholders including my women borrowers who have kept their faith in Fusion and the larger stakeholders including investors, debt providers, rating agencies and RBI. ”
Fusion Microfinance plans to hire around 1000 employees in the coming fiscal year thus expanding its employee base to 4000. The company has also recently raised INR 400 crore as debt from various financial institutions and is planning to raise another INR 400 crore as debt capital in the next few months. In its last round of funding Fusion Microfinance had raised INR 162 crore in 2016 which was led by Creation Investments, US based private equity firm.
The company has a strong presence in North Central India with 100% women client base in rural and semi urban areas. Fusion Microfinance was started in early 2010 and in last eight years has established network of 358 branches in 14 states which includes- Uttar Pradesh, Madhya Pradesh, Uttarakhand, Delhi, Haryana, Bihar, Jharkhand, Odisha, Punjab, Chhattisgarh and Maharashtra among others.
Fusion’s ability to raise equity and debt speaks of the stability of the organization and investor confidence which augurs well for the microfinance Industry at large.