Odisha-based microfinance institution Annapurna Finance, backed by Asian Development Bank (ADB) and Oman India Joint Investment Fund (OIJIF), has raised $20 million (around Rs 148 crore) from Germany-based development finance institution DEG, the company said in a statement.
It said DEG’s investment would help boost the financial inclusion objectives of Annapurna.
“The financial upliftment of the rural population by allowing them easy access to formal credit continues to be our prime focus at Annapurna. DEG’s investment would help us to meet our goal,” Gobinda Chandra Pattnaik, Managing Director, Annapurna Finance said.
Annapurna’s gross loan portfolio stood at Rs 5,128 crore in September 2021. It has a presence in 336 districts across 19 states. Its investors include SIDBI (Small Industries Development Bank of India), DCB Bank, and Women’s World Banking, said the statement.
In March this year, US-based impact investor Nuveen Global Impact Strategy led a $30 million (Rs 220.6 crore) primary equity investment in Annapurna Finance.
Last year, VCCircle reported that the Bhubaneswar-based microlender 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.
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, is a subsidiary of KfW, a German state-owned investment and development bank. The bank specialises in the development of the private sector in emerging markets.
Annapurna Finance
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 that exclusively provide services for these segments, said the statement.
The rural-focused microlender provides services across 313 districts in 18 states, with 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, said the statement.
As of December 2020, it had a gross loan portfolio of around Rs 4,500 crore.