The Mumbai-headquartered company plans to use the funds to expand its branch network and MSME (micro, small and medium enterprises) portfolio. It also plans to provide additional financial servicessuch as consumer finance and insurance in partnership with other institutions.
Set up in 2010, the company has a loan portfolio of Rs 255 crore and services 1,41,000 customers in four states through 38 branches.
“Over the next couple of years, Svasti will be a diversified financial services provider to the millions of uncounted low and middle-income households across India and be known for our deep relationships with our customers,” said Arunkumar Padmanabhan, cofounder, Svasti Microfinance.
The company said it has set a target of increasing its total loan portfolio to Rs 350 crore by the end of this financial year and of doubling it thereafter to Rs 700 crore by 2020. To achieve this, it said it would look at raising another Rs 100 crore over the next 12 months. Besides, it said it aims to impact 10 million women by 2030.
Arthur Sletteberg, managing director, NMI said, “We are very impressed with the platform that Svasti has laid so far by building a high-quality portfolio over the years that has shown great resilience even through black swan events like demonetisation as a result of its strong processes, backed by smart technology and a strong team.”
Early investors in Svasti Microfinance include Michael and Susan Dell Foundation, Bamboo Capital Partners (previously Bamboo Finance), venture capitalist Sajid Fazalbhoy, investment banker and angel investor Rajiv Dadlani.