Pahal Financial Services Pvt. Ltd., a microfinance Institution, has raised $10 million in equity and debt funding round.
The equity round from Europe’s impact investing firm, GAWA Capital (through its equity vehicle Huruma Fund), and the debt round from GAWA Capital’s advised debt vehicle (Magallanes Impacto FIL) and Northern Arc Capital.
Magallanes Impacto FIL managed by Magallanes Value Investors and advised by GAWA Capital – and Northern Arc Capital will be contributing equally to debt capital raised by Pahal financial services, as part of the deal.
The company has earlier raised equity capital from Dia Vikas Capital and BOPA (Base of Pyramid Asia).
Ahmedabad-based Pahal Financial Services was established in 2011, it is registered with the Reserve Bank of India as a non-banking financial services company, exclusively as an NBFC – MFI, which provides microfinance services to low-income households.
‘’Pahal was set up with a vision to serve the vulnerable sections of the society and has emerged as one of the fastest-growing microfinance institutions in India. Pahal’s vision will be further emboldened by this round of investment and plans to increasingly focus on the backbone of Indian economy, Agriculture. GAWA’s support is a validation of our business model and our approach to new age microlending in India”, said, Kartik Mehta, Co-founder and Managing Director, Pahal Financial Services.
“Pahal has just crossed the AUM of Rs1000 Crores This infusion will further strengthen Pahal’s ability to innovate into a full-scale digital microfinance entity and position itself as a micro fintech entity while simultaneously expanding its product range across diverse rural and semi-urban sectors. Coupled with the recently announced regulatory changes by the Reserve Bank of India for the microfinance sector, Pahal is well poised to serve the under-served strata of the society”, said, Purvi Bhavsar, Co-founder and Managing Director, Pahal Financial Services.
The company has more than 1500 employees, more than 170 branches with a portfolio of more than 770 crores, and is spread over 7 states of India namely Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Chhattisgarh, and Bihar.
The company constantly strives to identify the changing needs of its existing and future customers and accordingly designs products and services to assist them.
“We are very excited to partner with Pahal and are eager to support them in their next level of growth and expansion into new geographies and products. We believe that with the help of Pahal, deeply underserved farming community in India can focus on Agriculture and increase their income and standard of living. The microfinance sector in India traditionally has not been able to serve the small farmers with ad-hoc products. We believe Pahal is ready to take the challenge and serve this untapped segment with excellent products and services”, said, Luca Torre and Agustin Vitorica, Founders and Co-CEOs, GAWA Capital.
Till date, it has served 65,000+ borrowers for agriculture purposes. With this fundraising, it seeks to boost its portfolio of agriculture and allied services by leveraging GAWA’s experience working and supporting farmers in developing countries. Unitus Capital was the exclusive advisor for Pahal for this fundraised.
About Pahal financial services :
Pahal is registered with the Reserve Bank of India as a Non-Banking Financial Services Company more specifically as NBFC – MFI, providing microfinance services to low-income households. Pahal started its operations in the year 2011 and became one of the fastest-growing MFIs.
The organization has more than 1500 employees, 170+ branches with a portfolio of more than 770 crores stretching to 7 states of India – Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Chhattisgarh, and Bihar. Pahal has touched the lives of more than 8 lakh households belonging to marginalized communities by providing them credit for income-generating activities and helping them become economically self-sufficient along with bringing qualitative change in their standard of living.
The mission & vision of the organization endeavors to deliver quality services to its customers by offering a range of financial and non-financial products and services. Pahal constantly strives to identify the changing needs of its existing and prospective clients and accordingly designs the products and services to make the ends meet.
At present, Pahal has raised funds from more than 45 financial institutions including public/private banks, Non-Banking Financial Companies, DFIs, and Foreign Investors. It is also enrolled as a partner institution with MUDRA – Micro Units Development & Refinance Agency Ltd.