Piramal Alternatives invests Rs 600 cr in Annapurna Finance
The structured capital solution will help fuel the risk calibrated growth of Company’s assets under management
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Mumbai: Piramal Alternatives, the fund management division of the Piramal Group, has announced an investment of Rs 600 crore ($ 75 Million) in Annapurna Finance Private Limited, (“Annapurna” or the “Company”), a leading non-banking finance company focussed in microfinance. The deal involved a combination of secondary purchase of shares and providing Tier – 2 capital. The structured capital solution will help fuel the risk-calibrated growth of Company’s assets under management.
Annapurna is one of India’s leading microfinance institutions headquartered in Odisha with assets under management in excess of $ 1.25 billion as of March 31, 2024. A pan India player with a presence in 20 states, the company has also diversified into MSME financing. With its extensive network of 1,372 branches as of March 31, 2024, the company is poised for significant growth and is anticipated to sustain its leadership position.
Kalpesh Kikani, CEO, Piramal Alternatives said “Microfinance as a retail asset class has grown at CAGR of 32% over the last decade and is expected to continue the high growth trajectory. Further, it serves as a catalyst for economic development and stands as a cornerstone for a nation's growth, fostering financial inclusion and prosperity. A seasoned player like Annapurna having traversed multiple cycles, is well-positioned to capture the growth opportunity. Through Piramal Alternatives, we are committed to providing bespoke and value-accretive capital to support Annapurna’s growth aspirations in this promising sector."
Gobinda Chandra Pattanaik, Managing Director and CEO, Annapurna Finance Private Limited said, “The growth capital from Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets. Credit penetration in microfinance continues to be low and with the right capital and partner, we can script a profitable growth story. We are excited to partner with Piramal having strong expertise in the financial services domain and look towards leveraging its resources and capabilities as we embark on our next journey where we intend to grow and make an impact in the lives of our customers and conservation of our environment by providing more green products.”
Unitus Capital acted as the exclusive financial advisor to Annapurna.
