Fusion Micro Finance Limited IPO

Fusion Micro Finance Limited is a financial services company catering to underserved women across India in order to facilitate their access to greater economic opportunities. According to its red herring prospectus, the company has the fourth fastest gross loan portfolio CAGR of 53.89% between the financial year 2017 and 2021 and it is among the 10 largest NBFC-MFIs in India. According to Crisil, the company had the second highest number of lender relationships among the top 10 NBFC-MFIs at the end of FY22.

The company had 2.90 million active borrowers which were served by the lender’s 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories at the end of June 2022. As of June 30, 2022, their total Asset Under Management stood at Rs 73,89.023 crore, compared to Rs 67,85.97 crore at the end of FY22, Rs 4,637.84 crore in FY21 and Rs 3,606.52 crore in FY20.

The company’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.

The company also offers their existing customers top-up loans to manage interim working capital requirements for existing businesses as well as emergency loans to fund urgent financial needs arising as a result of unforeseen events such as health emergencies, natural disasters and family bereavements. The company benefits from a large and diversified mix of 56 lenders comprising a range of public banks, private banks, foreign banks and financial institutions.