Microlender Fusion Microfinance on Tuesday said it has raised Rs 500 crore from global private equity major Warburg Pincus and impact investor Creation Investments.

The lender, incorporated in 2010, is looking to expand its distribution footprint beyond the present 18 states and invest in technological tools, it said in a statement. The New Delhi-headquartered company uses joint liability group (JLG) model, developed by Grameen Bank in Bangladesh, to give loans of up to Rs 50,000.

In December 2018, Warburg had invested Rs 520 crore in the company which achieved a 45 per cent growth in assets under management in 2018-19 financial year and had an outstanding portfolio of Rs 3,350 crore as of December 2019, the statement added.

Fusion founder and Chief Executive Devesh Sachdev said the company is targeting to “maintain a steady and sustainable pace at a much larger scale in the next 3-5 years”. Warburg Managing Director Narendra Ostawal said, “The follow-on investment by existing investors will help expand the capital base to support Fusion’s growth plans.”

Over 92 per cent of Fusion’s customers are in rural areas, the statement said.

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