Svasti Microfinance Pvt. Ltd has raised ₹310 million from Serum Institute of India chief executive Adar Poonawalla, Nordic Microfinance Initiative AS(NMI) and Rajiv Dadlani Group, the fintech startup said.
Svasti Microfinance was co-founded by Arunkumar Padmanabhan and Narayanan Subramaniam in 2010. The fintech claims to service around 187,500 customers across 63 branches spread over 4 states, aggregating a loan portfolio of around ₹4 billion. Svasti’s post pandemic collection efficiency has reached 94% and it expects both collections and disbursements to reach pre pandemic levels by the end of this financial year, according to the company.
“We have superior proprietary technology and analytics capabilities for our fintech platform, which we will further develop and leverage to build a top-quality consumer finance business that will be profitable and also have high social impact. This round of investment from our existing investors motivates everyone associated to achieve our mission of fulfilling every woman’s Right to Finance and help transform the lives of their families as well,” said Padmanabhan.
Svasti’s fintech platform SvasTech uses artificial intelligence and machine learning to manage its operational risks using fully automated processes and to better understand its customers who hail from from the informal micro enterprise sector.
“We have productively used the last few months, when normal business was disrupted due to the pandemic, to make substantial improvements and upgrades to SvasTech. Furthermore, the constant trust of existing investors in Svasti will support the plan to double our branches and grow our portfolio to ₹8 billion by March 2022,” said Svasti co-founder Narayanan Subramaniam.
The company has raised a total of ₹1.3 billion till date. To boost its capital base and fund its growth plans, Svasti plans to raise around ₹1.5 billion of equity during FY21-22.
“We are very happy with the manner in which Svasti has taken up and managed the challenges of the pandemic that has adversely impacted various businesses globally. We have a lot of faith in the Svasti team’s ability to navigate these challenges and to emerge as one of the leading companies in its sector in the coming years,” said Arthur Sletteberg, managing director, NMI.
This article was first published on livemint.com