M Power Micro Finance, a Maharashtra-based non-banking finance company (NBFC), has raised Rs 25.7 crore in a fresh round of funding from (ICL). The company will invest Rs 8 crore immediately and the remaining over a 12-month period.

These funds will be used to augment to the capital of the company and fuel its expansion plans. In addition, IndiaNivesh will also be acquiring shares from some of the company’s individual shareholders totalling Rs 7.7 crore.

AU Financiers which is transitioning to a Small Finance Bank (SFB) continues to stay invested in M Power. the corporate advisory team at IIFL Investment Managers (earlier IIFL Wealth & Asset Management) was the exclusive financial advisor to M Power for this transaction, the company said in a statement.

“Having started with modest capital in 2010 and now bracing the impact of demonetisation, we are now embarking on an expansion plan to grow our branches and loan book. The fund infusion in 2 phases will enable calibrated expansion and balance the return metrics,” K M Vishwanathan, Founder and CEO at M Power said.

M Power, which started operations with 11 branches in Gujarat, has expanded to cover the Maharashtra and Rajasthan through a network of 27 branches. The company’s assets under management stood at Rs 130 crore as of September 30, 2016.

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