Mumbai: Fusion Microfinance on Thursday said it raised Rs80 crore in the latest round of funding from existing investors Creation Investments, Oikocredit and GAWA Capital.
The funding will help Fusion Microfinance continue its growth momentum through network expansion, infrastructure capacity ramp up and growing the employee base of 3,000, the company said.
The microfinance company raised Rs162 crore in 2016 in its last round of funding led by Creation Investments, a US-based private equity firm.
Fusion has a gross loan portfolio of Rs1,400 crore with a strong presence in north and central India.
“We have been able to maintain a healthy growth rate and are bracing ourselves up for the next phase of expansion. This is reflected in our investors’ continued faith on Fusion and its potential," said Devesh Sachdev, chief executive and founder of Fusion Microfinance.
“Demonetisation effects have almost phased out and we are looking at a promising growth phase in the coming year. We plan to increase our loan book by 60% to Rs2,400 crore in 2018-19," he added.
The fresh funds will be instrumental in capitalizing on new opportunities and will help the company reinforce its infrastructure, including integration of the latest technology to bring down overall operational costs, Sachdev added. Fusion plans to hire around 1,000 employees in the next fiscal year.
The company recently raised Rs400 crore in debt from various financial institutions and plans to raise an equal amount as debt capital
in the next few months, it added.
Fusion Microfinance has a 100% women client base in rural and semi-urban areas.
The company was launched in early 2010 and over the courts of the past eight years, the firm has established a network of 358 branches in 14 Indian states—including Uttar Pradesh, Madhya Pradesh, Uttarakhand, Delhi, Haryana, Bihar, Jharkhand, Odisha, Punjab, Chhattisgarh and Maharashtra.