Light Microfinance, an Ahmedabad-based microfinance institution, has raised 196 crores in a Series B funding round led by British International Investment, a UK-based development finance institution and impact investor.
All three of the Nordic Microfinance Initiative’s existing investors, Triple Jump BV and Incofin IM, also participated in this round.
According to an official release, the funds will be used for geographic expansion into new states to diversify the company’s product lines and continue to invest in technology and digital initiatives.
Founded in 2009 by Deepak Amin, Rakesh Kumar and Aviral Saini, Light Microfinance is based in Ahmedabad and has operations in Gujarat, Rajasthan, Madhya Pradesh and Haryana.
Deepak Amin, Founder and MD of Light Microfinance, said, “The investment is a result of Light’s commitment to robust risk management and technology and innovation in providing reliable finance for inclusive growth.”
Manav Bansal, Managing Director and India Director of British International Investment, said, “Our partnership with Light will ensure customers have access to financial products that support income-generating activities and increase productivity while improving financial security and supporting sustainable economic growth within communities even across the country.”
Light Microfinance is investing significantly in building its analytics platform, which has started to pay dividends for the company. The company doubled its assets under management (AUM) to over Rs 1,300 crore.
It has a customer base of more than three thousand, spread over 68 districts in four states. The company closed Series B funding just over a year after its earlier Series A funding in which it raised Rs 75 crore.
Even amid the stress the industry is facing due to the pandemic, Light says it has grown its AUM by more than 90% compared to industry growth of 25% across banks, small finance banks and NBFCs.