Annapurna Finance, an Odisha-based microfinance lender, raised Rs 260 crore ($ 35 million) from a group of investors to primarily fund its digital transformation and green finance.
Annapurna Finance said the $ 35 million investment from Encourage Capital, Accion and existing investor Oikocredit is the third fundraiser in 2021.
After attracting a $ 30 million investment from the Nuveen Global Impact Fund in March and DEG 20 million in November, total fundraising this year reached $ 85 million, the company said in a statement.
MFI lender has a rural distribution network across India, offering microcredit loans, home improvement loans and MSME loans to individuals and small businesses .
As part of its larger vision, Annapurna is adding green finance products to its offering and also advancing its digital transformation journey, he added.
Annapurna Finance is striving to transform into a fully digital financial services entity with the help of Accion’s investment and advisory services. This focus on digital strategy will further strengthen Annapurna’s financial inclusion goals, ” the company said.
It will increase the speed and convenience of distribution of the company’s products and provide access to women borrowers in rural India, bringing them into the formal financial ecosystem.
Encourage Capital’s investment will help Annapurna launch green finance products. Encourage Capital’s expertise will be used to launch clean and sustainable energy finance products to small businesses and individuals, he said.
Annapurna Finance said this will be Oikocredit’s fourth investment in the company since its first investment in stocks in 2016 and its first investment in debt in 2010.
Oikocredit has played a vital role over the years in the growth of the business and its ability to create greater social impact, he noted.
Gobinda Chandra Pattnaik, Managing Director of Annapurna Finance, said: “Established with the aim of integrating the economically weaker sections of society into the mainstream by providing financial services based on needs, vision of ‘Annapurna will be further strengthened by this round of investment’. “These investments will help us advance the cause by facilitating access to credit through a scalable digital framework and enabling us to engage in clean energy lending. Annapurna has a gross loan portfolio of Rs 5,128 crore as of September 2021, with microfinance operations spread across 336 districts in 19 states.
The company’s other investors are ADB, MUDRA, Oman India Joint Investment Fund, Belgian Investment Company (BIO), SIDBI Venture Capital, DCB Bank, Women’s World Banking, Nuveen Global Impact Fund India, DEG and Bamboo Capital Partners.
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