July 2017, Bhubaneswar: Annapurna Microfinance (“Annapurna” or the “Company”) is pleased to announce the successful completion of its most recent equity fundraising round. The round was led by Bamboo Capital Partners (“BCP”) – the established global emerging markets private equity firm specializing in commercial growth investments into finance, healthcare and energy at the base of the economic pyramid. Bamboo Capital Partners injected fresh equity capital of INR 324 million into Annapurna. The funding round also saw existing investors – BIO and Oikocredit –inject additional capital into the Company of INR 286 million (BIO- INR 143 million and Oikocredit- INR 143 million ). Annapurna has experienced significant growth in its loan portfolio and operations over the last 3 years whilst maintaining excellent portfolio quality and the additional capital injected is to be used to finance further growth going forward.
Separate to the above funding round, in October 21, 2016 Incofin, Annapurna’s long-time investor, exited the majority of it’s stake with a strong return, through a secondary share sale to Women’s World Banking Capital Partners (“WWB CP”) for INR 505 Million.
Annapurna Microfinance Pvt. Ltd. which is one of the fast growing NBFC-MFI in the country, currently operates in 10 different states with over 0.9 million borrowers and a Gross Loan Portfolio/ Total Assets of about INR 12,360 Million as on March 2017. While Annapurna’s core areas of operation have tended to be in the eastern states i.e. Odisha and Chhattisgarh, the Company has been expanding its footprint into neighboring states successfully and is now also exploring further expansion into the states of Punjab & Haryana, where operations are expected to commence in the near future. This well-timed capital support from Bamboo Capital Partners and existing investors will enable the company to not only strengthen its position in its existing core areas but to also expand and diversify its operations into previously untapped regions.
In previous capital rounds, Annapurna has received equity supports from SIDBI IMEF, SIDBI Venture Capital Ltd (SVCL), BIO, Incofin Investment Management, DCB Bank and Oikocredit as well.
Speaking on this development, Mr. Gobinda Chandra Pattanaik, MD & CEO of Annapurna said “We are excited to work with our new investment partner in the form of Bamboo Capital Partners and equally thrilled to have the additional equity from BIO and Oikocredit, both of them have been our long-standing partners.” “The contribution of WWB CP to the financial inclusion sector and to highlight women as incubators of rural entrepreneurship development for the last 35 years is immense.” “By leveraging the financial experience and access to capital of our investors, the Annapurna Management Team will be able to take advantage of new opportunities in the microfinance sector and strategically move forward in serving more clients with no or limited access to finance from the mainstream sector.”
Mr. Imraan Mohammed, Fund Manager & Head of Asia, of Bamboo Capital Partners commented, “Aside from the significant growth and stellar financial performance that Annapurna has demonstrated over the last few years, what really stood out for us was the tight operational culture the Management team has built and embedded into the firm and a holistic strategy which embraces both diversification as well as a deepening within its core areas and customer segments to serve the base of the economic pyramid, particularly in the less penetrated provinces of eastern India where financial inclusion levels are still very low. We are excited about the investment and look forward to having a long-term partnership with Annapurna that benefits all stakeholders.”
Ms. Christina Juhasz, Chief Investment Officer of WWB Asset Management, commented, “With its commitment to serving women in rural and underserved areas of Eastern India and its dedicated and innovative management team, Annapurna is an excellent partner for Women’s World Banking Capital Partners to further its objectives of reaching more women with more financial products and services that they need and deserve. We are greatly looking forward to a long-term partnership with Annapurna which will surely benefit all stakeholders.
Aditya Bhandari, Regional Director Incofin, said, “Right from our initial discussions, way back in 2012, we have seen relentless focus by the management team of Annapurna. The company is perfectly poised in cementing its leadership position within the Indian microfinance ecosystem. Annapurna’s ability to create a liquidity platform for its financial investors further improves its profile.”
Bamboo Capital Partners is a commercial private equity firm making investments that matter. BCP invests primarily through equity in game-changing businesses then applies a mix of geographical and sector expertise to deliver financial and social returns. Experts in energy, healthcare and financial services globally, Bamboo has offices in Luxembourg, Geneva, Bogota, Nairobi and Singapore. It has about 290 Million USD under management with a portfolio of 33 companies in over 20 countries.
BIO (Belgian Investment Company for Developing Countries), Annapurna’s existing investor, invests directly in private sector projects and as such makes a structural contribution to the socio-economic growth of developing and/or emerging countries. Its mandate requires strict criteria in terms of geographical targets, financing tools and above all, impact on development.
Oikocredit, is a worldwide cooperative and social investor, providing credit and equity to microfinance institutions and directly to trade cooperatives, fair trade organizations, renewable energy projects and SMEs in developing countries. Oikocredit’s strategic focus areas are inclusive finance, agriculture and renewable energy. Oikocredit has a development financing portfolio totalling 911 million Euro, invested across 70 countries worldwide. Oikocredit is privately financed through the investments of 51,000 individuals and organizations offering a positive triple bottom line to investors: social, environmental and financial.
Women’s World Banking Capital Partners is a private equity limited partnership that makes direct equity investments in women-focused financial institutions. This investment strategy builds on our belief that investors can influence institutions to ensure that women are part of their growth strategy and future profitability. This venture, with more than US$ 50 million under management, demonstrates what Women’s World Banking has long maintained: providing women with access to financial services can be a profitable business for banks, while contributing to the economic growth and welfare of families and communities.