Piramal Alternatives, the fund management division of the Piramal Group, today announced a significant investment of $75m in Annapurna Finance Private Limited, a leading non-banking finance company focused on microfinance.
The investment includes a mix of secondary share purchases and provision of Tier-2 capital, which will enable the company to continue its risk-adjusted growth strategy.
Annapurna has an impressive assets under management (AUM) total of over $1.25bn and operates across 20 Indian states.
With 1,372 branches, the company not only focuses on microfinance but has also expanded into MSME financing. This strategic diversification is poised to sustain Annapurna’s growth and reinforce its leadership in the financial sector.
Piramal Alternatives’ CEO, Kalpesh Kikani, emphasized the importance of microfinance as a catalyst for economic growth. “Microfinance as a retail asset class has grown at CAGR of 32% over the last decade and 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.”
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