Incofin Investment Management, a leading emerging markets impact investment firm, announces the sale of its remaining equity stake in Fusion Microfinance to Warburg Pincus, bringing an end to a successful eight year partnership. Established in 2010 and headquartered in New Delhi, Fusion focuses on servicing unbanked women living in the rural and semi-urban areas of northern and central India.

With its investment in mid-2010 via the Rural Impulse Fund II, Incofin was the first investor in Fusion with a 40% equity stake. Incofin was attracted to the quality of the two managers and Fusion’s focus on serving the underserved north and central Indian states, which at the time comprised of less than 5% of the microfinance market, compared to 25% in the southern states.  Incofin saw this as a significant opportunity to create tangible impact for the unbanked women in the rural areas, alongside generating a strong return for investors.

Incofin later supported the management team of Fusion throughout the Andhra Pradesh microfinance crisis and also led each of the subsequent fundraising efforts in the successful equity Series B to Series D rounds.

Incofin has been at the forefront of building one of India’s best microfinance institutions. Fusion has over 488 branches covering 18 states and serves more than 1.3 million customers, compared to 2,648 customers and 4 branches at the time of investment by Incofin.  Total cumulative disbursements amounted to INR 5,600 crores and as of September 2018, represented over INR 2,200 crores in outstanding loan portfolio.

Throughout the tenure of Incofin’s collaboration with Fusion, it has been recognised with multiple leading industry awards.

According to Devesh Sachdev, CEO of Fusion, “Incofin partnered with Fusion at an incubation stage in 2010. Today, we are one of the youngest top 10 microfinance companies in India. The sector has gone through turbulence in the last few years but the Incofin team has stood right by our side… they were accessible, supportive and patient. What we have achieved over the last 8 years would not have been possible without the support and cooperation from Incofin.”

Aditya Bhandari, Partner in India & Co Regional Director Asia, Incofin IM said, “It is a moment of sadness as we depart, but at the same time we are reassured to have Warburg Pincus take Fusion to the next stage of its sustainable journey. They have convinced the team of Fusion of their ability to pursue the values and mission of the company. We all are confident, that the future of Fusion will be even more promising. Fusion will continue to touch the lives of millions by offering top quality products in the most transparent and professional manner – creating an everlasting and invaluable social impact at the base of the pyramid.  We thank the management of Fusion and the clients for their trust and wish them well in the next chapter of their growth”.

Rural Impulse Fund II exits fully from Fusion after an 8 year equity partnership.

Fusion represents the 4th successful exit by Incofin in India, both in terms of impact and returns for the investors of Rural Impulse Fund II.

As a leading emerging markets impact investment firm, Incofin has invested (via equity and debt financing) over USD 2.1 billion in 257 microfinance/financial institutions across 53 countries in Asia, Africa, Latin America and the Caribbean and Eastern Europe.

About Fusion

Fusion Microfinance, headquartered in New Delhi, is a microfinance company registered with the Reserve Bank of India as an Non-Banking Financial Company – Microfinance Institution (NBFC – MFI).

For more information, please visit:

About Incofin

Incofin Investment Management ( is a global independent impact investment firm, focused on rural and agricultural finance, driven by a desire to promote inclusive progress. It is an AIFM licensed fund manager and has over USD 1 billion in assets under management.  Incofin has a team of more than 50 professionals spread over the headquarters in Belgium and local investment teams in India, Colombia, Kenya and Cambodia.

Incofin currently manages the following funds:

  • Rural Impulse Fund II (closed-end fund) invests in microfinance institutions that offer financial services in disadvantaged rural areas through debt and equity investments. RIF II focuses on investments in Africa, Asia, and Latin America.
  • agRIF is a third generation (closed-end) fund, making equity investments in financial inclusion for the rural sector (smallholder farmers and rural micro-entrepreneurs). agRIF also provides debt investments in agricultural SMEs and agricultural focused financial intermediaries.
  • The Fairtrade Access Fund (evergreen fund) contributes to the development of a fair and sustainable agriculture sector by providing working capital and long term financing for small holder farmers. This evergreen fund is open to investors for commitments.
  • Incofin CVSO (evergreen co-operative) specialises in debt and equity investments in the impact investments universe. It is a cooperative fund and open to retail investors.


Contact Details

Aditya Bhandari
Co Regional Director Asia

Elizabeth O’Reilly
Managing Partner
T: +33 6 75 61 22 41

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