India's Annapurna Microfinance raises $5m Series B round
The state-backed Belgian Investment Company for Developing Countries (BIO) has led a INR300 million ($5 million) Series B round for India's Annapurna Microfinance.
Existing investor Incofin Investment Management, also based in Belgium, took part in the round via its Rural Impulse Fund II.
Set up in 2009, Annapurna is a non-banking finance company (NBFC) and microfiance institution (MFI) serving the states of Chhattisgarh and Odisha in central and eastern India, respectively.
The business also designs and develops financial products and services for the urban poor in the sectors including health and education. As of February, Annapurna had 225,000 clients across 53 branches with a loan book of INR1.44 billion ($24 million).
Incofin originally invested INR130 million in Anapurna in June 2012.
According to a release, Annapurna will use this extra funding to expand its footprint in the region, providing finance to tribal-dominated communities via a network of self-help groups (SHGs) - village-based financial intermediaries which offer microfinance solutions to their members.
"This investment will help us in providing technology-based innovative financial solutions to thousands of SHGs thereby enabling us to strive forward in achieving our mission of an inclusive financial growth," said Gobinda Pattanaik, managing director of Annapurna.
The round represents BIO's first investment in an Indian MFI. Incofin, meanwhile, has made investments in around half a dozen India MFIs. Over the last five years it has invested in Hope MicroCredit Finance, Fusion Microfinance, Grameen Financial Services, Asomi Finance and Arman Financial Services.
Other transactions in this segment this year include International Finance Corporation's (IFC) investment into four separate NBFC's last month. First it committed around $91 million to Magma Fincorp, Au Financiers and Bandhan Financial Services - lending $35 million, $30 million and $26 million, respectively - then it invested INR3.15 billion in Cholamandalam Investment & Finance.
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