Warburg Pincus leads $74m funding round in Fusion Microfinance

Photo: REUTERS/Beawiharta

New Delhi-based financial services  firm Fusion Microfinance, has raised Rs 520 crore ($74 million) in a funding round led by an affiliate of global private equity major Warburg Pincus LLC.

This also marks Warburg Pincus’s first investment in the microfinance sector in India.

According to an official statement, the Series E round includes both a primary fundraise and secondary sale by early-stage investors. The round provided an exit to Fusion Microfinance’s early investors including Incofin, NMI ,BIO and SIDBI.

Existing backer Creation Investment also participated in the round.

In February this year, Fusion had raised Rs 80 crore funding from existing investors Creation Investments, Oikocredit and GAWA Capital. The company had also raised Rs 400 crore in debt from various financial institutions. Earlier, it had also announced plans to raise another Rs 400 crore as debt capital in the next few months.

In 2016, the microfinance company had raised Rs 162 crore in a funding round led by US-based private equity firm Creation Investments.

In its statement the company said, the latest round allows Fusion Microfinance not only to expand its capital base to support its organic growth, but will also aid in its plans to evaluate potential acquisition opportunities.

Spark Capital was the exclusive financial advisor to the transaction.

Founded in 2010, Fusion Microfinance claims to have disbursed over Rs 5,000 crore so far. It currently has presence through 500 branches across about 200 under-developed districts in 18 states of India. It has an outstanding portfolio of Rs 2,050 crore, as at September 30, 2018, with over 1.3 million customers.

“Fusion has demonstrated the ability to profitably scale up in a diversified manner. The company is led by a very talented team, has a robust operating platform and is very well capitalised to become a leader in the financial inclusion space,” said Narendra Ostawal, Managing Director, Warburg Pincus.

Also Read:

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.