Odisha-based non-banking financial company Annapurna Finance is planning to raise between $75 million and $100 million to facilitate exits for its early investors, according to livemint.com. The microlender, which operates primarily in Bihar, Odisha, and Madhya Pradesh, aims to use this capital raise to provide liquidity to initial backers.
The fundraising move follows Annapurna Finance’s last equity round over two years ago when Piramal Alternatives Trust, a subsidiary of Piramal Enterprises, acquired a 10.4% stake by investing ₹300 crore. Annapurna Finance’s lending model heavily relies on joint-liability groups, where borrowers mutually guarantee each other’s loans, which has helped the company build a strong presence in its core regions.
This capital raise is significant as it reflects growing investor confidence in regional microlenders focusing on underserved markets. The ability to facilitate early backer exits while continuing to expand lending operations could position Annapurna Finance as a key player in the microfinance sector, which has seen increased interest from institutional investors seeking stable returns in emerging markets.
Looking ahead, Annapurna Finance is expected to finalize the fundraising soon, which will enable it to maintain momentum in its lending activities and potentially expand into new territories. Stakeholders and market watchers will be closely monitoring how the company deploys the fresh capital and manages growth while balancing investor expectations.