Fusion Micro Finance Ltd

Fusion Micro Finance Limited provides financial services to unserved and underserved women in rural and peri-rural areas across India. They believe that their network and services have improved accessibility to formal credit at affordable prices, thereby positively impacting the lives of their customers in rural India, and they were one of the youngest companies (in terms of getting an NBFC-MFI licence) among the top NBFC-MFIs in India in terms of AUM as of June 30, 2022. In addition, they had the fourth fastest gross loan portfolio compound annual growth rate or CAGR of 53.89% between the financial years 2017 and 2021 among the 10 largest NBFC-MFIs in India, according to CRISIL.

Fusion Micro Finance’s key product offerings are income-generating loans that provide capital for women entrepreneurs in rural areas to fund businesses operating in the agriculture-allied and agriculture, manufacturing and production, trade and retail, and services sectors. Subject to certain eligibility criteria, they also offer their existing customers top-up loans to manage interim working capital requirements for existing businesses. In addition, they offer their existing customers cross-sell loans that are utilized for livelihood and productivity enhancing purposes as well as MSME loans to eligible enterprises.

They have prioritized organic geographic diversification since their inception in 2010, with a focus on strategic management of state concentration risk by expanding into underpenetrated rural areas that offer significant growth opportunities. As a result, Fusion Micro Finance has achieved a significant footprint across India, where it has extended its reach to 2.90 million active borrowers which were served through network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories in India (as of June 30, 2022).

According to CRISIL, they had the fourth lowest gross loan portfolio per district and second lowest gross loan portfolio per customer among the top ten NBFC-MFIs in India, for the financial year 2022, demonstrating better diversification and lower risk per customer.