Odisha-based MFI Annapurna Finance raises $ 35 mn in capital raise

Third funding round this year bring total investments to $85 mn as company enters clean energy lending.

Annapurna Finance, the Odisha-based micro finance institution (MFI), has raised $ 35 million (Rs 260 crore) in funding from Encourage Capital, Accion and existing investor Oikocredit.

It got $ 30 million from Nuveen Global Impact Fund in March 2021 and $20 million from DEG in November 2021, bringing total investments to $85 million this year.

The investments will help the company provide easier credit access and enter clean energy lending, said Gobinda Chandra Pattnaik, Managing Director, Annapurna Finance.

Annapurna, which has a nationwide rural distribution network, offers micro loans and home improvement loans to individuals and small businesses. The company said it is adding Green Finance products to its offering and scaling up its digital transformation.

Annapurna has a gross loan portfolio of Rs 5,128 crore in September 2021, with microfinance operations spread across 336 districts in 19 states. Unitus Capital advised Annapurna on the deal.

Investment and advisory services are transforming the company into a fully digital financial services entity, said Annapurna. This focus on digital strategy will boost financial inclusion by increasing the speed and convenience of the distribution of  products through digital channels.

It would also provide access to women borrowers in rural India, bringing them into the formal financial ecosystem.