Fusion Finance Limited founder and former managing director Devesh Sachdev resigned from the board of directors on November 4, exiting all roles at the microfinance company.
Sachdev has in late September stepped down as the managing director and chief executive officer, a position he had held since founding the company in 2010.
At the time, the company announced that he would continue as a non-executive director on the board to ensure a smooth leadership transition.
The board had then appointed Sanjay Garyali, who was already the CEO, as the new MD as well.
In a November 4 filing, Fusion said Sachdev had tendered his resignation from the board as well, with immediate effect, formally completing his exit from all executive and governance roles.
Sachdev requested a waiver of his rights under the Articles of Association to nominate one executive director to the board, a right retained as part of his founder privileges. The board would seek shareholder approval to amend the Articles via postal ballot, it said.
The development comes at a pivotal time for the microfinance lender, which is expected to draw down the remaining part of its paid-up capital raised in the process of rights issue. The issue, as reported by Moneycontrol on April 7, was largely subscribed by Warburg Pincus, the key private equity investor and promoter of the company.
The capital raise is seen as a key step in stabilising the company’s balance sheet after a challenging period marked by asset-quality stress and mounting losses.
The rights issue followed a series of efforts to strengthen Fusion’s governance and capital position, including a broader management reshuffle and board realignment.
In Q2, the results of which were announced on November 4, Fusion Finance reported a net loss of Rs 22.14 crore, lower than the Rs 92.25 crore loss in the previous quarter.
Its total income stood at Rs 432.69 crore, down from Rs 445.57 crore in Q1. Net interest margin (NIM) improved to 10.85 percent, and Gross NPA declined to 4.61 percent. Loan disbursements increased by 37 percent quarter-on-quarter to Rs 1,298 crore.
Garyali said the company’s “path to recovery continues,” citing disciplined underwriting, tighter operational controls, and tech-led processes as key drivers of improvement.
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