A non-banking financial company-micro finance institution (NBFC-MFI), Svasti Microfinance Pvt. Ltd., has secured $10 million from the existing investors. The firm, inaugurated by Arunkumar Padmanabhan and B Narayanan, was founded in 2008 and spread around 52 branches.
According to the reports by livemint, the funding round witnessed investors, including Adar Poonawalla, the Patni family, and Nordic Microfinance Initiative, who were the already investing group.
HNI led the funding round
The funding session was also participated by other prevalent investors such as the Kayenne Ventures, Singapore-based investment vehicle led by Kajal and Navin Fabiani, a Dubai-based family office of Nalwalas, and many high-net-worth-individuals driven by the Rajiv Dadlani group.
Padmanabhan, the co-founder, and CEO, asserts the firm’s plan to:
- Develop its loan portfolio to Rs. 550 crore by the end of the current financial year, and
- take the institution beyond Rs — 1,000 crores by the end of FY2021.
The CEO expects to establish 125 branches and service five lakh customers by the next two years.
Svasti’s future plans to enter new areas
Padmanabhan also reveals the plans to widening their earthly presence. He said, “We have a very high concentration in Maharashtra, as 75% of our loans originate from there. But over the next year, we look to diversify our presence. Besides Maharashtra, we are also present in Madhya Pradesh, Gujarat, and Uttar Pradesh and are adding more cities and branches in these geographies.”
Within the next years, Svasti aims to enter three more states in northern and western India. To date, it has raised a total of Rs 115 crore and further plans on using the fresh capital to develop its medium, small, and micro enterprises (MSME) loan portfolio. Besides this, the founders also look forward to rendering other financial services in collaboration with leading institutions.