Fusion Microfinance raises Rs 500 crore led by Warburg Pincus and Creation Investments

Fusion Microfinance

Fusion Microfinance, a leading microfinance institution (NBFC-MFI) has raised Rs 500 crores. This infusion is led its existing investors, an affiliate of Warburg Pincus LLC (“Warburg Pincus”), a global private equity firm focused on growth investing, and Creation Investments.

Fusion Microfinance

This round of investment has come at a time when the company is looking forward to expanding its distribution network across the country, integrate technology solutions across key business functions in a bid to serve customers better, and further firm the platform to address untapped growth opportunities within the microfinance sector.

Fusion Microfinance has secured growth of 45 percent in FY19 in AUM with an outstanding portfolio of around Rs 3350 crores as on December 2019.

Fusion has a well-diversified geographic portfolio with major emphasis on rural customers. About 92 percent of Fusion’s portfolio serves rural customers and the company has a pan-India presence through 575 branches across 18 states. Fusion Microfinance became operational in 2010 and is the youngest company amongst top 10 pure-play microfinance companies in India.

Devesh Sachdev, CEO and FounderFusion Microfinance said “We are honoured by the trust that our investors have laid on us. The follow-up investment by Warburg Pincus and Creation Investment reflects their faith in Fusion’s ability to harness Rural India’s incredible growth story. Fusion has been amongst the faster-growing companies in the sector over the last few years and is committed to maintaining a steady and sustainable pace at a much larger scale in the next 3-5 years. Building forth on a strong operating platform and strategic initiatives, we are well placed to become a valued company in the financial inclusion space.”

Narendra Ostawal, Managing Director, Warburg Pincus “Fusion Microfinance has steadily emerged as one of India’s leading microfinance companies with a well-diversified portfolio. The follow-on investment by existing investors will help expand the capital base to support Fusion’s growth plans. We continue to be impressed with the management team and look forward to supporting them in their endeavours.

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