Warburg Pincus Leads Rs 520 Crore Funding of Delhi-based Fusion Microfinance.

Warburg Pincus LLC, an American private equity firm has acquired a minority stake in Fusion Microfinance, a non-banking financial company (NBFC) for Rs.520 crore ($ 75 million).

Creation Investment, an existing investor, has also participated in this round. Investors such as Belgium’s Incofin, NMI, BIO and SIDBI have made successful exits in this round.

“This is one of the biggest equity fundraisings by an NBFC-MFI in the country and is also Warburg Pincus’ first investment in the microfinance sector in India,” the Delhi-based firm said in a statement.

The speculations around the market suggests that Spark Capital was involved in this transaction as the financial advisor.

“This investment would support our endeavor to develop into one of India’s most preferred companies in the financial inclusion space,” said Devesh Sachdev, CEO, and Founder of Fusion Microfinance.

“Fusion has demonstrated the ability to profitably scale up in a diversified manner. The company has a robust operating platform and is very well capitalized to become a leader in the financial inclusion space,” said Narendra Ostawal, Managing Director, Warburg Pincus.

This fundraising follows an internal round that the company completed in February 2018 and significantly expands Fusion’s capital base to support its high organic growth, the release said.

Fusion had an outstanding portfolio of Rs 2,050 crore, as on September 30, serving more than 1.3 million customers in 18 states.

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