Bhubaneswar-based Microfinance lender Annapurna Finance has raised ₹155 crore from Oman India Joint Investment Fund (OIJIF) – a mid-market private equity firm, co-sponsored by SBI and State General Reserve Fund of Oman (SGRF).

The investment is a part of Oman India Joint Investment Fund II (OIJIF II) commitment to invest in total Rs 200 crore in Annapurna Finance over a period of time. Unitus Capital acted as the investment banker for the current deal.

Annapurna, which is focused on rural India, is promoted by social activist Gobinda Pattanaik. With a portfolio of over ₹2,000 crore, it is one of the leaders in microfinance in eastern India primarily engaged in providing microloans to women borrowers for income-generating activities. It serves more than 1.2 million borrowers through a network of more than 400 branches across 14 states.

With the latest fund-raising, the company plans to diversify itself into newer asset classes and invest in technology to increase operational efficiency.

“With this new round of equity, we will be one of the best capitalized MFIs (microfinance institution) in the country,” said Pattanaik, managing director and chief executive officer of Annapurna Finance. “We look forward to leverage the experience of OIJIF, along with our existing investors, to further strengthen our commitment towards inclusive growth. We are now committed to expand our offerings to our borrowers by venturing in new asset classes like SME and housing finance.”

The company has raised multiple rounds of equity from investors to include Sidbi, Incofin, Belgian Investment Organization, Sidbi Venture Capital, DCB Bank, Oiko Credit, Women’s World Banking and Bamboo Capital Partners.

Earlier VCCircle had reported this year that Annapurna was looking to raise an institutional round to fund loan growth and provide an exit to early investors, besides launching an affordable housing finance company.

This is the second investment by OIJIF from its latest fund. OIJIF recently invested ₹100 crore in Pune-based automobile component maker Divgi TorqTransfer Systems.

Abhishek is a startup ninja who has spent his time meeting entrepreneurs and helping them tell their stories efficiently. You can find him biking around in his past time. Based out of New Delhi, he is a geek at heart, gadgets are his toys and internet technology is what keeps him going. Email: