Piramal Alternatives Invests Rs6 Bn In Annapurna Finance

The strategic investment will drive the company's AUM growth, support market expansion and reinforce its position as a leading player in the microfinance segment

Kalpesh Kikani, CEO, Piramal Alternatives

FinTech BizNews Service

Mumbai, May 13, 2024: Piramal Alternatives, the fund management division of the Piramal Group, today announced an investment of INR 600 crores (USD 75 Million) in Annapurna Finance Private Limited, (“Annapurna” or the “Company”), a leading non-banking finance company focussed in microfinance. The deal involved a combination of secondary purchase of shares and providing Tier – 2 capital. The structured capital solution will help fuel the risk calibrated growth of Company’s assets under management.

Annapurna is one of India’s leading microfinance institution headquartered in Odisha with assets under management in excess of USD 1.25 Billion as on March 31, 2024. A pan India player with presence in 20 states, the company has also diversified into MSME financing. With its extensive network of 1,372 branches as on March 31, 2024, the company is poised for significant growth and is anticipated to sustain its leadership position.

Kalpesh Kikani, CEO, Piramal Alternatives said “Microfinance as a retail asset class has grown at CAGR of 32% over the last decade and expected to continue the high growth trajectory. Further, it serves as a catalyst for economic development and stands as a cornerstone for a nation's growth, fostering financial inclusion and prosperity. A seasoned player like Annapurna having traversed multiple cycles, is well positioned to capture the growth opportunity. Through Piramal Alternatives, we are committed to providing bespoke and value-accretive capital to support Annapurna’s growth aspirations in this promising sector."

Gobinda Chandra Pattanaik, Managing Director and CEO, Annapurna Finance Private Limited said, “The growth capital from Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets. Credit penetration in microfinance continues to be low and with the right capital and partner, we can script a profitable growth story. We are excited to partner with Piramal having strong expertise in financial services domain and look towards leveraging its resources and capabilities as we embark on our next journey where we intend to grow and make an impact in the life of our customers and conservation of our environment by providing more green products.”

Unitus Capital acted as the exclusive financial advisor to Annapurna.

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