Microfinance institution Annapurna Finance, backed by Asian Development Bank (ADB) and Oman India Joint Investment Fund (OIJIF), has raised $30 million (Rs 220.6 crore) as primary equity in an exercise led by US-based impact investor Nuveen Global Impact Strategy.
“Nuveen bought a significant minority stake in the business. It will play a role in driving the company’s strategy, helping the firm to identify and execute potential acquisitions as well as leveraging the company’s significant outreach to broaden its climate initiatives. Nuveen will join the board of directors,” Annapurna said in a statement.
Unitus Capital has been the sole advisor throughout the fundraising process, the statement added.
Last year, VCCircle had reported that the Bhubaneswar-based micro lender would tap existing investors to raise capital to wade through the Covid-19 crisis.
In February 2019, multilateral lender ADB invested Rs 137 crore ($19.1 million at current exchange rates) in Annapurna.
In July 2017, Annapurna raised Rs 61 crore ($9.5 million) from Bamboo Capital Partners and existing investors Belgian Investment Company for Developing Countries (BIO) and the Netherlands-based Oikocredit.
Annapurna’s investors include SIDBI (Small Industries Development Bank of India), DCB Bank, and Women’s World Banking.
Nuveen is the investment manager of American pension fund Teachers Insurance and Annuity Association of America (TIAA).
It manages over $5.8 billion in public and private markets impact investing strategies. Nuveen has already invested nearly $500 million in direct and indirect private equity capital across over 200 portfolio companies in alignment with the United Nations Sustainable Development Goals.
Established in 2009, Annapurna Finance (formerly Annapurna Microfinance) is primarily engaged in providing microloans to women borrowers for livelihood purposes.
Over the last few quarters, the company diversified its portfolio to MSME and affordable housing segments. It has opened 60 branches which exclusively provide services for these two segments.
The rural-focused microlender provides services across 313 districts in 18 states serving a total of 1.8 million clients. With almost 850 branches, 85% of Annapurna’s borrowers operate in rural areas.
Annapurna provides group loan products, individual loan products, products and services that support safe water and sanitation, consumer durables and environment friendly strategies.
As on December 2020, it had a gross loan portfolio of around Rs 4,500 crore.