Micro finance lender Annapurna Finance has raised $15 million in its Series A2 funding round from Proparco, private-sector financing arm of French Development Agency (AFD).
This is the fourth funding the company has raised in the past 15 months, bringing total capital inflows to $100 million.
In March 2021, it had raised $30 million from Nuveen Global Impact Fund, $20 million from DEG in November, $35 million from Encourage Capital, Accion, and existing investor Oikocredit.
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The company plans to use the funds to grow its loan book, invest in technology, expand geographically and advance its vision of enabling large-scale financial inclusion.
Bhubaneshwar-based Annapurna Finance was founded in 2009 by Gobinda Chandra Pattanaik and Dibyajyoti Pattanaik, It is an RBI registered Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) which provides micro-credit loans, home improvement and MSME loans to individuals and small businesses.
“We are thrilled to have our existing debt partner Proparco further support us and now partner with us on the equity side. Their belief in our ability to enable financial inclusion across the country and empower women has fortified our commitment to building one of India’s largest financial services companies”, said, Gobinda Chandra Pattanaik, Managing Director, Annapurna Finance.
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It also claims to have crossed INR 6,500 Crore in AUM and is present and expanding continuously with more than 980 branches in 20 states across the country.
“It gives us immense pleasure to back the founders, who have meticulously, thoughtfully and consistently built Annapurna, with a strong yet nimble business model that has focused on making financial services and products available to financially excluded people especially women in rural areas of India. We are looking forward to Annapurna’s exciting journey and believe in their ability to grow profitably while also creating a significant impact.”, said, Diane Jegam, Regional Director – South Asia at Proparco.
About Annapurna Finance
Annapurna Finance Pvt. Ltd (AMPL), one of the fast growing NBFC-MFI in the country, has its roots in the early 1990s doing various developmental activities as a not-for-profit entity registered as Peoples Forum. The microfinance activities started with the evolution of Mission Annapurna under Peoples Forum from the year 2005.
Mission Annapurna was able to reach the interior hinterlands of Odisha through its untiring effort of addressing the economic necessities of poor women at their doorstep. As the program grew large by size and area of operation, there was an utter need to transform itself into a more regularized entity. The gradual transformation from Mission Annapurna bring forth the name Annapurna Finance Pvt Ltd (AMPL) to the sector in the year 2009. Thereafter, AMPL registered itself with the Reserve Bank of India (RBI) as an NBFC-MFI in the year 2013. All through the organizational building process, Annapurna has followed two basic principles: Innovate & Replicate.
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Annapurna, over the years, has continued to innovate in its products and delivery mechanisms, to make the whole process of micro-credit delivery as effective as possible. That innovation is then replicated to its new operational areas with the same energy and enthusiasm. Over the years this principle has helped Annapurna to establish itself as one of the leading MFIs in India.
Annapurna was established with a purpose of serving the economically backward clients by bringing them to mainstream, providing need based financial services at their doorstep. The focus has been clear, to reach the areas where formal financial institutions find it unprofitable to settle in. Its objectives have not only limited to just reach and serve but also by providing financial and technical support to strengthen entrepreneurial skill for effective and efficient undertaking of business activities. Along with this, Annapurna is providing clients MSME Loans and Small Housing Finance.