It’s BIB’s first ever debt funding in India as the overseas firm looks to be a part of India’s microfinance story, which is facing challenges as income generation takes a hit among the weaker section of the population amid a raging second wave of the covid pandemic.
This is Fusion’s first external commercial borrowing, managing director Devesh Sachdev said. “It opens a new channel of funding for us in the midst of a challenging environment,,” he said.
The capital will help the Delhi-based MFI to on-lend to women borrowers from low-income households, increasing their access to finance.
Northern Arc Capital facilitated the deal.
“We believe that especially in these turbulent times it is more important than ever to show a strong commitment and support to the underprivileged women entrepreneurs active in the rural areas of the country,” Markus Christ, senior investment officer (Asia) at BIB was quoted as saying in a press statement.
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