Asian microfinance operator CreditAccess Asia has raised $30 million in funding from Hong Kong-based private equity firm Olympus Capital Asia, according to a statement.
This is Olympus Capital Asia’s fourth private equity investment in the past year. As part of the agreement, Olympus also gets a seat on the company’s board, the statement added.
The money will be used by CreditAccess Asia to fund its operations in existing markets and to set up retail lending operations in new geographies within Asia. In India, the company operates through Bengaluru-based microfinance institution Grameen Koota Pvt Ltd.
“We are very pleased to have Olympus Capital Asia on board as a strategic shareholder of CreditAccess Asia,” said Paolo Brichetti, CEO of CreditAccess Asia.
“Given their deep experience in financial services and presence in our key markets of India and South East Asia, Olympus Capital Asia is an ideal partner to help accelerate our growth plans driven by tapping new geographical markets in Asia and via the expansion of our product range to meet our clients’ needs,” Brichetti added.
Since its establishment in 2007, CreditAccess Asia has experienced strong growth in India, Indonesia and the Philippines. The company has developed an operational model based on the microfinance group-lending methodology in order to provide high quality financial services to this unbanked sector at low risk and with high levels of efficiency.
“CreditAccess Asia is very well positioned for the growth opportunities within the unbanked sector by offering fair and stable access to credit and other financial services. We are confident in the growth prospects of the company and we look forward to working with Paolo Brichetti, the management team and the other shareholders,” said Daniel Mintz, managing director of Olympus Capital Asia.
CreditAccess Asia currently has a total portfolio of $258 million (240 million euros) with over 1.3 million clients. Over the next two years, the company aims to expand its operations into an additional one to two new countries and expects to more than double its client base to over three million customers.