British International Investments, development financial institution The UK government will invest $9.2 million in NBFC-MFIs. In parallel, NMI will raise its stake by an investment of another $7.9 million, while Triple Jump will put in $5.4 million and Incofin will put in $2 million, people familiar with the development said.
These three existing investors came on board with a total investment of $10 million between 2020 and June 2021.
“We plan to use the proceeds from the new investment to promote geographical expansion, new products and technology backbone,” Managing Director Deepak Amin told ET.
Founded in 2009 by Amin, Rakesh Kumar (Chief Executive Office) and Aviral Saini (Chief Financial Officer), Lite is locating Uttar Pradesh, Himachal Pradesh and Odisha to expand beyond its current operations into Gujarat, Rajasthan, Madhya Pradesh and Haryana. making plans.
It also plans to invest in several technology interventions as it plans to scale up its digital lending initiatives as well as other technology-based interventions such as artificial intelligence-powered analytics platforms and mobile applications.
Amin said a follow-up equity expansion could happen in this financial year itself. “Many other investors were willing to invest. If we find the right investor, we can raise more money,” he said.
The lender is also in talks with a few fintech firms to explore acquisition possibilities. “We have received feeders from several fintech firms and are selectively talking to some of them,” Amin said.
The lender, which had its assets under management (AUM) at Rs 1060 crore at the end of March, aims to grow its book to Rs 1,800 crore by March 2023. At present, its AUM is Rs 1,300 crore, the company said.
India Ratings and Research said the NBFC-MFI sector could grow between 20-30% year-on-year in FY23. “The disbursements are expected to pick up for the rest of FY23 after the slowdown seen in the first quarter,” the rating company said, adding that the growth would be supported by the expansion of capital.
The NBFC-MFIs together have a collective portfolio of Rs 98,000 crore, which is 35% of the microfinance universe of Rs 2.76 lakh crore at the end of June. Banks are the largest contributors with 38% share while small finance banks, other non-banking finance companies and non-profit players contribute the rest.