Mumbai, 15 May 2024 – Piramal Alternatives, a subsidiary of the Piramal Group, has announced a significant investment of Rs 600 crore in Annapurna Finance, a leading microfinance institution. The investment includes a secondary stake purchase from an existing shareholder and an infusion of non-core tier-II capital, aiming to boost the company’s growth and asset management.
This strategic move is designed to support the “risk-calibrated growth” of Annapurna’s assets under management (AUM), which stood at USD 1.25 billion as of March 31, 2024. With a strong presence across 20 states through its 1,372 branches, Annapurna Finance not only serves individual microfinance clients but also extends credit to small and medium enterprises.
Kalpesh Kikani, CEO of Piramal Alternatives, highlighted the impressive growth trajectory of the microfinance sector, noting, “Microfinance as a retail asset class has grown at a CAGR of 32 per cent over the last decade and is expected to continue this high growth trajectory.”
Gobinda Chandra Pattanaik, Managing Director and CEO of Annapurna Finance, expressed optimism about the partnership, stating, “The growth capital from Piramal will help in business diversification and consolidating our position in key markets.”
While the specific details of the stake acquired and the exact allocation of the Rs 600 crore investment remain undisclosed, this “structured capital solution” marks a pivotal step for Annapurna Finance as it aims to enhance its service offerings and expand its market footprint.
This investment underscores Piramal Group’s commitment to supporting high-growth sectors and fostering financial inclusion across India.
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