Through secondary equity acquisitions, the investment arm of the Piramal Group, Piramal Alternatives, invested Rs 600 crore in Odisha-based Annapurna Finance.
The corporation invested Rs 300 crore for a secondary equity sale that allowed it to acquire a 9.85% interest in Annapurna, however the terms of the agreement were not made public. Piramal Alternatives has also purchased the microfinance company’s tier-2 convertible bonds, as reported by Financial Express.
Read also – [Funding News] Supply Chain Platform 3SC Secures Fresh Funding
According to a statement, the investment includes buying a secondary holding from an existing shareholder and giving it non-core Tier-II capital.
Kalpesh Kikani, chief executive officer of Piramal Alternatives, said: “Microfinance as a retail asset class has grown at a CAGR (compound annual growth rate) of 32% over the last decade and is expected to continue the high growth trajectory,”
As of March 31, 2024, Annapurna, which is based in Odisha, had an AUM of $1.25 billion. It is present in 20 states with 1,372 branches, and it also provides loans to small, medium-sized, and micro businesses.
Read also – [Funding News] Supply Chain Platform 3SC Secures Fresh Funding
Gobinda Chandra managing director at Annapurna Finance said “the growth capital from Piramal will help in business diversification and consolidating position in key markets.”
Want to go deeper into the world of startups and entrepreneurship? Check out these categories on VIESTORIES:
Startup Success Stories: Discover inspiring tales of startups overcoming challenges and achieving success.
Funding Startup News: Stay updated with the latest news and trends in startup funding and investment.
Startup Insights: Dive into in-depth analyses of various industries and market trends to make informed business decisions.
