Chennai-based Belstar Microfinance Limited (BML), a subsidiary of Muthoot Finance Ltd. has raised equity capital of Rs 275 crore from Affirma Capital and others.
The round also saw participation from existing investors Muthoot Finance and Maj Invest.
The funding comes at a time when the Reserve Bank of India released a new regulatory framework for microfinance loans in March 2022.
George Alexander Muthoot, Managing Director, Muthoot Finance, said in a release that the funding will help the microfinance player strengthen its balance sheet and also help grow the loan book.
Chennai-based Belstar Microfinance Institute working since 2008 to curb poverty and provide financial empowerment.
Belstar Microfinance has partnerships with several banks, including SBI, SIDBI, Indian Bank, and NABARD.
“The people at the bottom of the pyramid were most impacted during the pandemic and access to finance helps them the most, besides aiding to kickstart the economy. Microfinance is more of a necessity for many small borrowers and businesses and is a great way to empower the purchasing power of the people who are at the bottom of the pyramid and also assist in the empowerment of rural women”, said, George Alexander Muthoot, Managing Director, Muthoot Finance.
“We are thankful to the investors for having faith in us and the present round of equity funding of Rs. 275 crores not only reflects the confidence of the investors in us but also the opportunity in the microfinance sector”, said, Dr. Kalpana Sankar, Managing Director, and Mr. Balakumaran Executive Director of Belstar.
“Such a significant equity fund infusion from trusted investors adds up to the management’s responsibility and Board members to not only live up to their confidence but also to diligently work towards an effective transformation and benefit the larger targeted audience – microfinance customers”, said, V.A. George, Independent Director on the Board of Belstar.
“We were impressed by the Company’s ability to manage the book quality despite multiple external shocks”, said, Vijay Nallan Chakravarthi, Managing Director, Affirma Capital.