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Fusion Microfinance, focussed on rural women entrepreneurs and backed by Warburg Pincus targets 2021 IPO

Devesh Sachdev, the vice-chairman and board member of MFIN ( self-regulatory body for NBFC-MFIs) is the founder and CEO of Fusion Microfinance. Fusion Microfinance was set up in 2010 and now serves 1.8 million active customers through a network of 591 branches and 5,490 people.

April 01, 2021 / 09:35 PM IST
Representative image

Representative image

New Delhi-headquartered Fusion Microfinance, which provides financial services to underserved women in rural and semi-urban regions in the country, is preparing an initial public offering (IPO) to raise around Rs 1,700 crore this year, people with knowledge of the matter told Moneycontrol. The firm is backed by US private equity firms Warburg Pincus and Creation Investments Capital Management.

“Fusion Microfinance has recently kicked off plans for a listing in 2021 and is looking to raise around Rs 1,700 crores,” said one of the persons cited above. The size of the IPO hasn’t been finalised as yet and may vary at a later stage, he added.

Last month, microfinance peer Arohan Financial Services filed papers with market regulator Sebi to raise around Rs 1,800 crore through an IPO. Key listed peers of Fusion Microfinance include the likes of Spandana Sphoorty Financial Ltd and Credit Access Grameen Ltd which have slipped by 20 percent and 13 percent, respectively in the last three months of trading.

“The IPO will facilitate a partial exit for the private equity investors and also raise some growth capital for the firm. As of now, the plan is to file the DRHP with Sebi in Q1 of FY21-22,” added a second person.