India's Muthoot Microfin raises $19m from US-based GP

The deal is understood to value the company at about INR11.1 billion. The GP is expected to follow up with an additional commitment of INR1.5 billion for business development in lower income markets and geographic expansion.

“We may open an additional 500 new branches in the next three years to expand its footprint across the country,” Muthoot CEO Sadaf Sayeed said, according to Livemint. 

Founded in 2015 to support the microfinance operations of parent company Muthoot Pappachan Group, Muthoot provides financial support to low-income earning women entrepreneurs, living in the remote rural areas and urban slums of India. It offers micro-loans and promotes entrepreneurship through skill development workshops and financial literacy classes for its clients.

India's microfinance companies and non-banking financial companies (NBFC) have gained momentum in attracting investor interest by providing a way to fill the gap between the financial products offered by traditional banks and the needs of the country's large unbanked population. Recent private equity activity in this space includes a $50 million round for Janalakshmi Financial Services and INR1 billion for Suryoday Micro Finance.

Creation focuses in particular on microfinance and has also been active in the Indian market. Last year it co-led a INR1.6 billion round for Fusion Microfinance alongside Spain’s Gawa Capital. This followed participation in a $25 million commitment to NBFC Capital Float.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Financials
• Expansion
• India
• USA
• NBFCs
• Financial Services