Financial inclusion group Fincare lands $75m

There’s more investment going into Indian financial inclusion-focused lending platforms with Fincare picking up a $75m round.

The funding comes from emerging market investor LeapFrog alongside True North, TA Associates, Tata Capital, SIDBI, Kotak Mahindra Old Mutual Life Insurance Ltd and Edelweiss Tokio Life Insurance.

Edelweiss Financial Services provided financial advice on the transaction.

Fincare operates as an umbrella holding company to a range of lending and financial services businesses including Disha Microfin, Future Financial Servicess and Lok Management Services.

Group company Fisha Microfin is one of just 10 businesses to receive in-principle approval from the Reserve Bank of India to become a Small Finance Bank, a centrepiece of the government’s financial inclusion agenda.

The Bangalore-based company reported a 97% increase in assets under management over the past three years and now operates more than 270 offices across seven states in South and West India.

Fincare currently provides financial services to more than 1.2 million emerging consumers, defined as people living on under $10 per person a day, the majority of whom are women with 95% living in rural areas.

Company’s CEO Rajeev Yadav said: “This investment is testament to the scale of the opportunity for financial inclusion in India, and underscores the ability of Fincare products to drive significant revenue expansion alongside social impact for India’s underserved rural communities.”

He said the financing will be used to build the infrastructure required to accelerate growth.

LeapFrog partner Michael Fernandes said: “Fincare sits firmly at the intersection of profit with purpose.

“Its excellent management team has built an outstanding high-growth, profitable and customer-centric model that reaches underserved people with essential financial services.

“This is a perfect example of a company improving the lives of emerging consumers and delivering strong returns.”

Copyright © 2017 FINTECH GLOBAL

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