Ahmedabad based Light Microfinance has secured $10 million (Rs 75 crore) in Series A funding from European impact investors Incofin (Belgian), Nordic Microfinance Initiative (Norwegian) and Triple Jump (Dutch), the company said in a statement.
This is the first such investment by Triple Jump in India, it said. The investment round was led by Incofin.
The three funds follow an investment strategy aimed at creating social or environmental impacts in addition to financial gains. The point of impact investing is to use money and investment capital for positive social results.
“The investment will boost our expansion plans in states of Haryana, Rajasthan and Madhya Pradesh. We are also investing in multiple technology interventions like an AI-driven analytics platform and mobile applications to enhance sourcing, credit underwriting and collection capabilities through individualised mobile training modules and performance trackers,” said Rakesh Kumar, chief executive officer of Light Microfinance.
The company claims that in the financial year 2020-21 it reported a portfolio growth of 30% at Rs 623 crore with 0.9% non performing assets (NPAs) which is less than one sixth as compared to the industry average in India.
“This investment strengthens our balance sheet and will enable further expansion of our loan book to over Rs 1,000 crore,” said Aviral Saini, chief financial officer of Light Microfinance.
“We are truly impressed with the management team and their commitment to the impact space over the last 11 years. They have identified the right trends for the industry and built a robust model. They have planned smart technology investments which will bring significant benefits to all stakeholders,” said Aditya Bhandari, partner and co regional director, Incofin.
Light Microfinance started its operations in 2009 and by March 2021 the company claims it was catering to 2.17 lakh borrowers. It has a workforce of over 1,400 people across 68 districts helping rural women access affordable loans for income generation by leveraging the company’s technology platform.
