Plan to use the funds to expand their own lending operations to micro, small and medium enterprises (MSMEs) and micro loan borrowers, with a sharp rise in credit demand in the hinterland.
The company’s managing director Ajit Kumar Singh told ET that the company is looking to raise over Rs 300 crore – to fund its lending business. “A new investor will come on board,” he said.
While several investors had shown interest, talks with three potential investors are in advanced stages. Two of these are foreign funds. Singh said one of them would start ground-level investigation from Wednesday.
“Now valuation will be important,” he said.
Belgium’s Incofin Investment Management and Denmark’s Major Invest are stakeholders in Save, which serves approximately 21 million rural people in more than 8,600 villages in 559 districts of the country. The promoters hold about 60 per cent stake in the company.
Apart from operating as business correspondent partner for banks, the company has two separate wholly owned subsidiaries – Save Financial Services, Save Microfinance for lending to MSME and Microfinance sectors respectively.
It also has a housing loan subsidiary – New Habitat Housing Finance & Development.
The group’s cumulative on-book loan portfolio is around Rs 1,100 crore, with the largest microfinance portfolio at Rs 900 crore.
Sev’s microfinance business has gained momentum in the last few years. In July 2020, microfinance was just Rs 100 crore.
The group started its journey in 2009 as Save Society. began working as business correspondent for State Bank Of India in 2010, three years before it was incorporated as Save Solutions. also works for Bank of Baroda, Bank of India, Punjab National Bank and two Regional Rural Banks as their agents to provide banking services at places where bank branches are not available.
The group also collaborates with banks for co-lending to the bottom of the pyramid borrowers.