Muthoot Microfin Ltd. (MML), the microfinance business of the Muthoot Pappachan Group, said it had secured $50 million investment from Greater Pacific Capital (GPC), which would be deployed in financial inclusion.
“This is the largest equity financing in the Indian microfinance sector since 2019. MML serves nearly 1.9 million women entrepreneurs across the country and is the 5th largest microfinance institution in India,” MML said in a statement.
GPC has provided equity as primary capital to meet the growth needs of the company.
Sadaf Sayeed, CEO, MML, said, “With this round of funding, we will look to double our assets under management from ₹5,000 crore ($670 million) currently to ₹10,000 crore ($1.3 billion) over the next 2-3 years. We plan to open 500 new branches to increase our presence.”
“This funding will further strengthen our balance sheet, taking our capital adequacy to over 30% and allow us to support and empower an additional 1.5-2.0 million more low-income households,” he added.
Ketan Patel, Founder and CEO of GPC, said, “We invest in market leading businesses that are a force for good by driving significant and measurable development impact, alongside their commercial success and MML is a great addition to our portfolio.”
Thomas John Muthoot, Chairman of MML and MPG said, “In the coming days you will see our staff playing a role of wealth manager and a wealth creator for the poor. We believe in the principle of responsible lending. Further, with the use of advanced analytics and a technology stack that we have built, we intend to extend fit-for-purpose products to the customer and take micro-lending to the next level.”
Akshaya Prasad, Partner and Managing Director, GPC, will join MML’s board as part of the transaction.
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