Microfinance institution Annapurna Finance, backed by Asian Development Bank (ADB) and Oman India Joint Investment Fund (OIJIF), has secured $35 million (Rs 260 crore) funding from Encourage Capital, Accion International and Oikocredit International.
Annapurna said in a statement on Tuesday that it will be deploying the amount for offering
green finance products. Besides, Encourage Capital will be guiding the company on its clean and sustainable energy financing products offerings to small traders and individuals.
“These investments will help us further the cause by providing easier credit access through a scalable digital framework and allowing us to enter into clean energy lending,” said Gobinda Chandra Pattnaik, Managing Director, Annapurna Finance.
Annapurna Finance claims to have a pan-India rural distribution network which offers micro credit loans, home improvement and MSME (micro, small, medium enterprises) loans to individuals and small businesses.
"Set up with a focus of bringing economically weaker sections of society into the mainstream by providing need-based financial services, Annapurna’s vision will be further emboldened by this round of investment,” Pattnaik said.
Annapurna Finance is looking to transform itself into a fully digital financial services entity, which means the company will then be enabled to offer capital access to women borrowers across rural areas in India, the company said, adding that Accion will be guiding it in this space.
“Our investment and advisory support will help the company in accelerating digital inclusion and serving under-served rural customers in India,” said Michael Schlein, President and Chief Executive Officer, Accion.
Annapurna said it has a gross loan portfolio of Rs 5,128 crore as of September 2021, with microfinance operations spread across 336 districts in 19 states. Unitus Capital advised Annapurna on the deal, the company said.
In November, the company had raised $20 million (around Rs 150 crore) from Germany-based development finance institution DEG. Earlier this year, Annapurna had raised $30 million (Rs 225 crore) as primary equity led by US-based impact investor Nuveen Global Impact Strategy.