Odisha-based microfinance institution Annapurna Finance on Friday said it has secured $15 million (Rs 115.5 crore) as a part of its Series A2 funding round from French development finance institution, Proparco.
The startup plans to use the fresh capital to grow its loan book, invest in technology, expand geographically and further its vision of enabling financial inclusion at scale.
With the latest round, Annapurna Finance - backed by entities like Asian Development Bank (ADB) and Oman India Joint Investment Fund (OIJIF) - has raised $100 million in total funding so far.
Founded by Gobinda Chandra Pattanaik and Dibyajyoti Pattanaik in 2009, Annapurna Finance (formerly Annapurna Microfinance) primarily provides microloans to female borrowers for livelihood purposes. Over the last few quarters, the company has diversified its portfolio to MSME and affordable housing segments.
“Proparco’s belief in our ability to enable financial inclusion across the country and empower women has fortified our commitment to building one of India’s largest financial services companies. We continue to invest heavily in our tech capabilities and operations to further boost the financial inclusion objectives of Annapurna over the next decade and strive to take it towards our larger banking ambitions,” said Gobinda Chandra Pattanaik, Managing Director, Annapurna Finance.
The company with a presence across 20 states India and over 980 branches, have crossed Rs 6,500 crore AUM mark, it said in a statement.
“Annapurna, with a strong yet nimble business model has focused on making financial services and products available to financially excluded people, especially women in rural areas of India”, said Diane Jegam, regional director – south Asia, Proparco.
Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and West Asia. Its action focuses on key development sectors: infrastructure, mainly for renewable energy, agricultural businesses, financial institutions, health and education.
In November last year, Annapurna Finance raised $20 million from Germany-based development finance institution DEG.