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.