Microfinance institution Arohan Financial Services, has raised Rs 60 crore in fresh funding from private equity firm, Tano Capital, to expand its presence across the country as well as increase its gross outstanding loan portfolio. The company will extend its presence in Odisha by the end of April, and in 10 states over the next three to fine years, including Uttar Pradesh, Madhya Pradesh and Chattisgarh. The investor will hold a 30% stake in the MFI.
Arohan was established with a mission to provide financial inclusion to poor households. A Non-Banking Finance Company (NBFC) MFI with headquarters in Kolkata, Arohan operates in the low income states of West Bengal, Bihar, Jharkhand and Assam through over 100 branches. Arohan’s loan portfolio currently is close to Rs 400 Crore, catering to the financial needs of over 325,000 customers.
Through an acquisition in September 2012, Arohan joined the Intellecap Group. This acquisition involved incremental investment of more than $5 million and represented the first consolidation in India’s microfinance sector. In September 2013, Aavishkaar Goodwell-II and Michael and Susan Dell Foundation invested a further amount of $3.4 million in the organization. The company has further received investments from alternate investment fund Tano Capital of $10 million in March 2015
Earlier this month, Bangalore-based Ujjivan Financial Services, a microfinance institution, raised $96 million (about Rs 603 crore) in a new round of funding, led by CX Partners, CDC, NewQuest Asia Investments and Bajaj Holdings. GIC, the sovereign wealth fund of the government of Singapore, and International Finance Corp, the private investment arm of the World Bank, are committing to invest Rs 1,600 crore in Bandhan, another Indian MFI in terms of borrowers and outstanding loans.