Belstar Microfinance Ltd, a subsidiary of Muthoot Finance, on Wednesday said it has signed definitive pacts to raise a primary equity capital of Rs 350 crore from Affirma Capital as well as existing investors Muthoot Finance and Maj Invest.
This round of funding is being led by funds advised by Affirma Capital who will invest Rs 300 crore out of a total round of Rs 350 crore, a statement said. “This funding will help Belstar to grow its loan book and accomplish its vision of becoming a socially responsible microfinance institution working towards entrepreneurship and economic empowerment of women,” Muthoot Finance Managing Director George Alexander Muthoot said in the statement.
The equity raise is subject to obtaining required regulatory approvals, the company said. It is the second private equity investment into Belstar, with Maj Invest investing in 2018. Maj Invest is a Danish asset management company with about USD 17 billion under management, providing services in asset management and private equity (including financial inclusion business). Belstar has a branch network of 650 across 19 states and has an asset under management of over Rs 3,100 crore.
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