Annapurna Finance raises $15 million in equity from French investor Proparco

Kolkata: Microfinance lender Annapurna Finance raised $15 million in equity from French investor Proparco, making it the fourth capital raise by the Bhubaneswar-based entity in the last 15 months.

Proparco is the private sector financing arm of the French public entity AgenceFrançaise de Développement Group (AFD Group).

Annapurna will use the funds to grow its loan book, invest in technology and expand geographically, the company said on Friday.

With a pan India rural distribution network and a multi-product strategy, it offers micro-credit loans, home improvement, and MSME loans to individuals and small businesses.

ET had highlighted in its report on June 15 that Annapurna was preparing to raise equity.

With the fresh raising, Annapurna received a total of $100 million equity infusion in the last 15 months -- $30 million from Nuveen Global Impact Fund in March 2021, $20 million from DEG in November 2021 and $35 million from Encourage Capital, Accion and existing investor Oikocredit in March this year.

Annapurna, founded in 2009 by Gobinda Chandra Pattanaik and Dibyajyoti Pattanaik, had its gross loan portfolio at Rs 6,500 crore at the end of March. It caters to 2.3 million borrowers through over 980 branches spread across 20 states across the country.