Piramal Group’s Fund Management Arm Invests $72 Mln In Annapurna Finance

Piramal Group’s fund management division Piramal Alternatives invested 600 crore Indian rupees ($72 million) in microfinance firm Annapurna Finance Private Ltd.

The deal involved a combination of secondary purchase of shares and providing Tier-2 capital, Piramal Alternatives said in a statement. It didn’t provide further details on the investment.

The strategic investment will drive the company's assets under management (AUM) growth, support market expansion and reinforce its position as a leading player in the microfinance segment, according to the statement.

Piramal Alternatives Chief Executive Officer Kalpesh Kikani said the microfinance as a retail asset class has grown at a CAGR of 32% over the last decade and it is expected to continue the high growth trajectory.

“A seasoned player like Annapurna having traversed multiple cycles, is well positioned to capture the growth opportunity,” he noted.

Odisha-based Annapurna Finance’s AUM stood at over $1.25 billion as on 31 March 2024, according to the statement. The company, with presence in 20 states and network of 1,372 branches, has also diversified into MSME financing, it said.

“The growth capital from Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets,”’ Annapurna Finance Managing Director & CEO Gobinda Chandra Pattanaik said.

Unitus Capital acted as the exclusive financial advisor to Annapurna Finance.

Note: $1 = 83.5185 Indian rupees

(Send feedback to editor@cornerofficejournal.com)