Comments
Muthoot Pappachan Group has raised growth capital for its micro-finance business from Chicago-based PE fund Creation Investments.
With this deal, Muthoot Microfin Ltd (MML) has tied up ₹130 crore of growth capital from Creation Investment LLC. Post-infusion, Creation will hold 11 per cent stake in Muthoot Microfin. The growth capital so raised will be utilised to serve BoP clients and to expand business to newer geographies such as Bihar, Uttar Pradesh, Odisha, Chhattisgarh, Haryana and Punjab, in addition to the existing 10 states. MML proposes to open 500 new branches in the next three years to expand its footprint pan-India.
Thomas Muthoot, Executive Director, Muthoot Pappachan Group, said the promoters have committed to infuse ₹150 crore capital by March 2018. The growth capital raised through PE will be used for the adoption of modern technology and promoting digitisation. With an overall micro-finance customer base at 13 lakh, the company provided loans to over 4 lakh rural households in FY17 till December 2016.
“We have moved to complete bank disbursals because of which we are able to disburse loans worth ₹300 crore every month,” he added.
According to Sadaf Sayeed, CEO, Muthoot Microfin, the company has set a scorching pace of growth with Assets under Management growing at 122 per cent and profits growing at 222 per cent over last year and loan disbursements growing at an annualised rate of nearly 75 per cent. The company aims to reach ₹10,000 crore of AUM by March 2020 and plans to expand its client base from 1.3 million households to 4 million in the next three years.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.