Fusion Microfinance Pvt. Ltd has raised Rs 500 crore ($69.61 million at current exchange rates) in a funding round led by existing investors Warburg Pincus and Creation Investments.
The New Delhi-based microlender said in a statement the funding has come at a time when it is seeking to grow its distribution network, integrate its technological solutions and enhance its platform to address growth opportunities.
Fusion founder and CEO Devesh Sachdev said the firm has been amongst the faster-growing companies in the sector over the last few years and aims to maintain a steady pace at a much larger scale in the next three to five years.
Warburg Pincus managing director Narendra Ostawal said Fusion has a well-diversified portfolio and that the follow-on investment would help it with its expansion plans.
The PE giant had first led a Rs 520 crore funding round in Fusion in December 2018. That investment marked its first bet on an Indian microlender. Impact investor Creation Investments had also participated in that Series E round.
Previously, Fusion Microfinance had raised Rs 80 crore in February 2018 in a round of funding from Creation, Oikocredit and GAWA Capital.
Founded in 2010, Fusion predominantly operates in rural and semi-urban areas. It offers financial services mainly to women, and has a strong presence in north and central India.
The microlender says it serves around two million clients through its 5,500-strong workforce spread across 575 branches in 18 states. It says it achieved year-on-year growth of 45% in its assets under management for 2018-19. It had an outstanding portfolio of Rs 3,350 crore as of December last year.
