French investor Proparco invests $15 million in Annapurna finance

24 Jun 2022 , 02:55 PM

The Bhubaneswar-based microlender Annapurna Finance raised $15 million in equity from French investor Proparco, making it the company’s fourth capital round in the previous 15 months.

The private funding division of the French government’s Agence Française de Développement Group is called Proparco (AFD Group).

The money will be used by Annapurna to increase its loan book, make technology investments, and broaden its geographic reach, the firm announced on Friday. It provides micro-credit loans, home improvement loans, and MSME loans to individuals and small enterprises with a pan-India rural distribution network and a multi-product strategy.

With the new funding, Annapurna has now received a total of $100 million in equity infusion in the last 15 months: $30 million in March 2021 from Nuveen Global Impact Fund, $20 million in November 2021 from DEG, and $35 million in March this year from Encourage Capital, Accion, and current investor Oikocredit.

Gobinda Chandra and Dibyajyoti Pattanaik started Annapurna in 2009, and as of the end of March, it had a gross credit portfolio worth Rs6,500 crore. Through more than 980 locations scattered throughout 20 states, it serves 2.3 million borrowers.