Light Microfinance Secures US $ 10 Million Series A Funding From European Investors

Ahmedabad-based microfinance firm Light Microfinance (Light) has secured US $ 10 million (INR 75 Cr) in its Series A funding from leading European impact investors Incofin (Belgian), Nordic Microfinance Initiative (Norwegian) and Triple Jump (Dutch). This is the first investment of this type of Triple Jump in India. The three funds follow an investment strategy aimed at creating social or environmental impacts in addition to financial gains. The purpose of impact investing is to use investment money and capital for positive social results.

Light CEO Rakesh Kumar says, “This is a very important milestone. We are very pleased that three leading investors are joining us. The investment will strengthen our expansion plans in the states of Haryana, Rajasthan and Madhya Pradesh. We are also investing in several technology interventions such as an AI-based analytics platform and mobile applications to improve procurement, credit underwriting and collection capabilities through individualized mobile training modules and performance trackers.

In FY21, the company announced 30% growth in its portfolio to 623 Cr with an NPA of 0.9%, which is one-sixth below the industry average in India. “This investment strengthens our balance sheet and will allow a further expansion of our loan portfolio to over Rs 1000 Cr”, adds Aviral Saini, CFO of Light.

Light Microfinance started its activities in 2009 and in March 2021, the company was dealing with 2.17 lakh borrowers. It employs more than 1,400 people in 68 districts, helping rural women access affordable loans to generate income and leverage the company’s technology platform.

Light Microfinance offers micro and meso finance products and services aimed at low-income households in rural and peri-urban areas. The company has introduced many innovations in its operations and technology over the years. It will use the proceeds for further investments in technology and the expansion of its operations into new geographies.

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