Incofin cvso, one of Incofin’s funds under management, disbursed a EUR 1 million senior loan to Save Solutions (SAVE) in India. SAVE is serving over 15 million clients with a vast, rural network of more than 7,700 active customer service points across 30 states. SAVE brings a gamut of banking products such as cash deposits, withdrawals, transfers, remittances, … SAVE also manages two owned non-banking financial companies which provide rural credit services to MSME entrepreneurs.
Covid-19 hit India severely. Nevertheless, SAVE’s operations faced minimal impact of the pandemic outbreak, they remained resilient and even continued to grow. As financial services were listed as essential services, SAVE managed to operate 100% of their customer service points despite nation-wide lockdown. In April 2020, SAVE observed a significant jump in transaction volume (+20% increase on year-on-year basis), mainly on account of government cash transfer schemes announced to support the bottom-of-the-pyramid population.
“We are thankful to Incofin for their belief and relentless support in our organization’s growth journey. This debt funding from our investor resonates to be a testimony of their confidence in SAVE’s ability. Given the significant disruption caused by the Covid-19 pandemic, we are committed to create a strong impact on the lives of rural households with our unique and well-diversified business model. This new funding will enable us to empower micro and MSME entrepreneurs.”
Ajeet Kumar Singh, Co-Founder & Managing Director of SAVE Solutions.
SAVE plans to utilise the Incofin cvso funding to support its two non-banking financial companies providing rural credit services. Through its focused rural presence, SAVE intends to continue to leverage its nation-wide network and to expand its banking and affordable lending activities to reach the underserved population.
“SAVE offers a unique combination of high social impact and broad based asset-side, liability-side financial products for a vast majority of deep rural population. SAVE’s active operations and record financial results, amidst the COVID-19 situation, is a clear validation of its strong business model. We are delighted to partner with them in their endeavour to create a sustainable and well diversified rural financial ecosystem.” – Aditya Bhandari, Co-Regional Director Asia of Incofin IM.