Gujarat-based NBFC Light Microfinance has secured ₹196 crore in its Series B funding led by British International Investment (BII), the UK’s development finance institution (DFI) and impact investor. All three of the company’s existing investors, Nordic Microfinance Initiative (NMI), Triple Jump BV and Incofin IM, also participated in this round.
“The new funding will enable the company to continue its rapid growth and geographical expansion into new states and continue to invest in technology to enhance the digitalisation of customer experience,” Light’s co-founder and CEO Rakesh Kumar told HT.
He added that the company will be rapidly expanding its footprint in northern India and its fintech offerings too, including digital-only products.
“I am thrilled that BII’s patient and flexible capital will back India’s microfinance sector, which we see as critical to boosting financial inclusion by increasing access to finance for women in rural areas and promoting women’s economic empowerment, ” said Manav Bansal, managing director and India head of the British International Investment.
Arthur Sletteberg, NMI managing director, said, “Light’s asset quality and ability to serve their clients during challenging times is impressive. The company demonstrated a yearly 90% growth ending June 2022 while maintaining a low-risk portfolio, which shows its deployment of robust risk management systems. We are eager to continue to support and cooperate with Light on their journey to grow social and economic inclusion for their clients.”
Rakesh said the company has a multi-year roadmap and plans to continue building heavily on its cutting-edge technology platform and new products. It has already deployed artificial intelligence (AI) and machine learning (ML) models to provide real-time information and updates in various critical areas.
Light Microfinance was founded in 2009 by Deepak Amin (MD), Rakesh Kumar (CEO) and Aviral Saini (CFO). It is headquartered in Ahmedabad and has operations across Gujarat, Rajasthan, Madhya Pradesh and Haryana with ₹1300 crore as AUM.