Asirvad Microfinance, India’s fourth-largest NBFC MFI and a subsidiary of Manappuram Finance has decided to raise $15 million in a seven-year external commercial borrowing loan from the US-Based World Business Capital Inc(WBC) based in Hartford, Connecticut(USA).
One of the official statements declares that this borrowing is fully supported by the US International Development Finance Corporation (DFC) and this loan will enable Asirvad to expand its business of providing small loans to women owners in rural areas with low income.
To resolve the critical solution of the developing countries DFC partners with private sector entities to finance solution for these situations. Raja Vaidyanathan, managing Director, Asirvad said “this transaction with an international institution coming at this challenging juncture certainly gives a boost to the microfinance sector and reiterates the resilience Asirvad has always shown, and the speed it bounce back.”
Set up in 2007 by the Vaidyanathan, and the company was sold to Manappuram Finance in 2015. It has a customer base of around 260 lakh women, with 7000 employees serving across 1047 branches in 24 states. Manappuram finance had taken over the Chennai- based firm in February 2015 with a 94.78 per cent stake at present.
Founded in 2003, WBC is headquartered in Hartford, the capital city of Connecticut, US. It is a legally regulated commercial finance company that offers flexible term loans to help small and medium-sized firms in manufacturing, distribution, logistics, transportation, food processing, packaging, renewables, financial services and other sectors. WBC generally focuses on Latin America and the Caribbean, Asia, Africa, Central and Eastern Europe and the Middle East.
Yogesh Udhoji, CFO, Asirvad microfinance Ltd. Said, with this funding we look forward to supporting the rural women entrepreneurs with the quality product but with less opportunity to transform their lives.”
In FY2021, evoke of the pandemic had slowed down the impacted growth and there was a marginal erosion in assets under management (AUM) to INR 5357 crore as of Q3, FY2021. The company had shown a net profit of INR17.7 crore in Q3FY2021, against a net profit of INR 71.21 crore in the year-ago period.