European impact investor Incofin Investment Management on Friday said it has invested USD 4.7 million (about Rs 35 crore) in a Series A equity round in Namdev Finvest.
In a statement, Incofin said it has made the investment through its India Progress Fund (IPF).
"The funding from IPF will strengthen our organic expansion plans, especially further penetration in the states of Gujarat, Madhya Pradesh and Maharashtra," said Jitendra Tanwar, Founder and Managing Director of Namdev.
"We would leverage Incofin''s strategic and deep impact support in our mission to provide affordable and qualitative financial services to our clients," he added.
Founded in 2013 by first generation entrepreneur, Jitender Tanwar, the NBFC-headquartered in Jaipur, has rapidly established itself as one of the leading NBFCs in rural and semi urban MSME market in the North western region of India.
"Namdev provides a rare combination of deep social impact, solid management team and a strong balance sheet. This is our first investment out of our new India focused equity fund (IPF). India growth story is largely dependent on tech-enabled solutions offered to MSMEs and in-turn for rural prosperity," Aditya Bhandari, Co-Head Asia, Incofin, said.
As of March 2021, the company reported an AUM of Rs 242 crore, with a growth of 44 per cent year-on-year. Currently, it has more than 13,000 borrowers and aims to reach 100,000 borrowers in next 5-7 years.
Headquartered in Belgium, Incofin is an international impact investment company promoting financial inclusion for rural entrepreneurs and creating synergies across the agri-food value chain.
It has recently concluded its first close of a USD 100 million India equity fund - IPF, focussed on agri-food and financial inclusion sectors.
Incofin''s current investments in India include Sohan Lal Commodity, Management, SAVE Solutions and Light Microfinance.