SAVE Group, which offers financial services in rural areas in India through its subsidiaries, Wednesday said it has raised $13 million (Rs 108.3 crore) in a fresh funding round from international asset management firms Incofin and Maj Invest.
Incofin made the investment from Incofin India Progress Fund while Maj invested through its Maj Invest Financial Inclusion Fund III K/s.
Maj invested around $3 million into SAVE Solutions, the holding company of SAVE Group, in March. Now, Incofin has invested $10 million in SaGgraha Management Services, a wholly owned subsidiary of SAVE specialising in microfinance loans.
Founded in 2009 by Ajeet Kumar Singh, Pankaj Kumar, and Ajay Kumar Sinha, SAVE operates a banking business correspondent network to serve over 25 million customers. It plans to use the funds to expand its services through its wholly-owned subsidiaries to provide microfinance loans, secured MSME loans and affordable housing loans.
“Beyond strengthening our ability to expand our loan book, this infusion emboldens our pursuit of delivering high-quality financial services in the rural underserved segment,” said Ajeet Kumar Singh, co-founder and director of SAVE Solutions.
“We will benefit immensely from Incofin’s and Maj Invest’s global experience and value creation and eagerly anticipate our collaboration with them,” said Singh.
As of March 2024, SAVE Group reported an assets under management (AUM) of around Rs 1,962 crore with 522 branches spanning 17 states. It aims to reach a group AUM of Rs 18,000 crores in the next five years.
At the same time, SaGgraha reported an AUM of Rs 464 crore through the business correspondent network. It operates with 237 branches across seven states and is targeting an AUM of around Rs 5,000 crore in the next five years.
