November,
2019:Svasti
Microfinance Private Limited (Svasti) has raised a total of USD 10 Millioncapital
from Mr. Adar Poonawalla, Nordic Microfinance Initiative (NMI) and Rajiv
Dadlani Group.
In 2015, Svasti raised funds from billionaire
Mr. Adar Poonawalla, who has subsequently invested in follow-on rounds in 2017,2018
and in the current round as well. In 2018, Svasti raised funds from Nordic
Microfinance Initiative, who has also now invested again in the current round.In
addition, in the current round,Svasti has raised funds from Family offices of
Nalwalas (Dubai), Kayenne Ventures (Singapore) the investment vehicle of
siblings Kajal&NavinFabiani, Patnis (Mumbai) and other HNIs led by the
Rajiv Dadlani Group. Till date, Svasti has raised totalcapital funds of USD 17
Million.
Apart from expanding its branch
network, Svasti will use the capital raised to expand and increase its MSME
loan portfolio and provide other financial services, such as consumer finance
and insurance, in partnership with other leading institutions. Early investors
in Svasti include the Michael & Susan Dell Foundation, Bamboo Financial
Inclusion Fund, venture capitalist Mr. SajidFazalbhoy and investment banker and
angel investor Mr. Rajiv Dadlani. A portion of the funds raised in the current
round are being used to provide full exits to the Michael & Susan Dell
Foundation and Bamboo Financial Inclusion Fund.
Svasti was co-founded by Arunkumar
Padmanabhan and Narayanan Subramaniam in 2010 with the objective of bringing
their extensive experience in banking, finance and technology development into
the consumer finance sector to expand access to finance to all sections of
society and bring about positive change in society.
Svasti today services around 185,000
customers across 52 branches spread over 4 states, aggregating a loan portfolio
of around Rs. 380 Crores. Over the years, Svasti’s portfolio quality has been
among the best in the industry. Svasti
aims to reach total loan portfolio of Rs. 550 Crores by FY 2020 and Rs. 1100
Crores by FY 2021.
Commenting on the transaction, Svasti’s
Co-Founder Narayanan says: “We are very pleased to have closed this fund
raise within a year of our previous fund raise. This gives us adequate capital
funds to meet our growth plans until March 2021.”
Svasti’s Co-Founder Arunkumar added: “We have built a great
organization with over 700 employees who are all very excited to receive such
strong support from our investors. Our team is energized to pursue our vision
to become a diversified financial services provider to the millions of low and middle
income households across India. We have superior proprietary technology and
analytics capabilities, which we will further develop and leverage to build a
top-quality consumer finance business that will be profitable and also have
high social impact.”
Arthur Sletteberg, Managing Director
of NMI,
commenting on the transaction says: “We are very happy with the progress Svasti
has made since our initial investment last year and are glad to support the
Company in continuing its momentum toscale its business and build a high-quality
portfolio in the underserved markets.”
About
Svasti:Svasti
is an RBI licensed NBFC-MFI with headquarters in Mumbai. Svasti’s vision is to
fulfill the right to finance of women with a host of financial services and
knowledge, that will help transform their lives. You can read more about Svasti
at https://www.svasti.in
About
Michael & Susan Dell Foundation: Founded in 1999, the Michael &
Susan Dell Foundation is dedicated to transforming the lives of children living
in urban poverty through improving their education, health and family economic
stability. Read more about The Michael & Susan Dell Foundation at
www.msdf.org
About Bamboo
Financial Inclusion Fund: Bamboo Financial Inclusion
Fund is a commercial private equity fund making investments that matter. It
finds game-changing businesses then applies a mix of geographical and sector
expertise to deliver financial and social returns. Read more about Bamboo
Capital Partners at http://www.bamboocp.com/
About
Nordic Microfinance Initiative (NMI):NMI invests in microfinance
institutions (MFIs) in Asia and Africa, strictly focusing on double bottom line
investments, where both financial and social goals are met. NMI is a
public-private partnership, owned by the Norwegian and Danish governmental
funds for developing countries (Norfund and IFU) and large private sector
institutions. Through 11 years of operation, NMI has managed funds of over 200
million USD and has recently launched a new major fund. Presently, NMI holds 27
investments. NMI’s headquarter is in Oslo, Norway, with offices in New Delhi
(India), Copenhagen (Denmark) and Nairobi (Kenya). Read more about NMI at https://www.nmimicro.no
About Mr.
Adar Poonawalla:Mr.
Adar Poonawalla is the chief executive officer (CEO) and executive director of
Serum Institute of India, the world's largest vaccine manufacturer by number of
doses produced. In 2016, he was listed by GQ magazine as one of the 50 most
influential young Indians and was awarded Philanthropist of the year. In 2016,
he launched www.adarpcleancity.com, a citywide initiative where he committed
& spent 20 million dollars to clean up the city of Pune using hundreds of
trucks, Glutton machines and bins across the city under his personal management
and dedicated team. In 2018, received the CNBC Asia’s award for Corporate
Social Responsibility of the year. Read more about Mr. Adar Poonawalla at
http://www.adarpoonawalla.com/
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