Bhubaneswar-based NBFC, Annapurna Microfinance has raised Rs 61 crore in a fresh equity fund from Bamboo Capital Partners and existing investors. Bamboo Capital Partners injects Rs 32.4 crore into Annapurna while existing investors, BIO and Oikocredit contributed additional capital of Rs 28.6 crore (14.3 crores each) into the Company.
Mr. Imraan Mohammed, Fund Manager & Head of Asia, of Bamboo Capital Partners commented, “Aside from the significant growth and stellar financial performance that Annapurna has demonstrated over the last few years, what really stood out for us was the tight operational culture the Management team has built and embedded into the firm and a holistic strategy which embraces both diversification as well as a deepening within its core areas and customer segments to serve the base of the economic pyramid, particularly in the less penetrated provinces of eastern India where financial inclusion levels are still very low.”
Annapurna Microfinance has experienced significant growth in its loan portfolio and operations over the last 3 years whilst maintaining excellent portfolio quality. The firm currently operates in 10 different states with over 0.9 million borrowers and a Gross Loan Portfolio/ Total Assets of about INR 12,360 Million as on March 2017.
Commenting on this development, Mr. Gobinda Chandra Pattanaik, MD & CEO of Annapurna Microfinance said, “By leveraging the financial experience and access to capital of our investors, the Annapurna Management Team will be able to take advantage of new opportunities in the microfinance sector and strategically move forward in serving more clients with no or limited access to finance from the mainstream sector.”
The company plans to use the additional capital for further growth and expansion into the states of Haryana and Punjab. This well-timed capital support from Bamboo Capital Partners and existing investors will enable the company to not only strengthen its position in its existing core areas but to also expand and diversify its operations into previously untapped regions.
Earlier in October 2016 Incofin, Annapurna’s long-time investor, exited the majority of its stake with a strong return, through a secondary share sale to Women’s World Banking Capital Partners (“WWB CP”) for Rs 50.5 crore. In previous capital rounds, Annapurna has received equity supports from SIDBI IMEF, SIDBI Venture Capital Ltd (SVCL), BIO, Incofin Investment Management, DCB Bank and Oikocredit as well.