Incofin invests USD 4.7 million in Series A round of the Indian financial services provider Namdev. This investment is done from the recently launched Incofin India Progress Fund (IPF).

Jaipur-based Namdev Finvest Private Limited (Namdev), was founded in 2013 and has rapidly established itself as one of the leading non-banking financial companies in North West of India. The company focuses on impact lending to micro, small and medium enterprises (MSMEs) and has presence in rural and semi-urban areas in the northwestern region of India. Namdev services currently more than 13,000 borrowers and aims to reach 100,000 clients in the next five to seven years. Founder and Managing Director of Namdev, Jitendra Tanwar labels this investment as a milestone for Namdev: “We are glad to partner with a world class impact investor as Incofin IM. The funding from IPF will strengthen our organic expansion plans. We would leverage Incofin’s strategic and deep impact support in our mission to provide affordable and qualitative financial services to our clients.

Aditya Bhandari, Regional Director Asia for Incofin comments: “Namdev provides a rare combination of deep social impact, a solid management team and a strong balance sheet. This is our first investment out of our new India focused equity fund IPF. India’s growth story depends largely on tech-enabled solutions for MSMEs and in-turn for rural prosperity. We are pleased to collaborate with Namdev in its vision to support first-time borrowers and women entrepreneurs in rural India.

Incofin has a strong presence in India with two local offices (one in New Delhi and one in Chennai). Besides Namdev, current investments in India include Sohan Lal Commodity Management (agri-to-finance integrated group), SAVE Solutions (one of the largest business correspondent networks), Faircent (largest peer-to-peer lending platform) and Light Microfinance (leading microfinance company focused on rural women entrepreneurs).

Incofin cvso disburses a EUR 2 million to Light Microfinance, so the financial institution can continue to support its clients.

Light Microfinance reaches over 200,000 clients – exclusively women in rural and semi-urban areas.  Loan sizes are small and used for productive purposes in the underserved markets of west India. The biggest group of their clients are dairy farmers (70%) who are part of local cooperatives. The collection centers in the villages are the places where those farmers can deposit the produced milk. The dairy sector in India cannot be underestimated. The country has the world’s largest dairy herd and is first among all countries in both production and consumption of milk.

Chauhan, for example, has been a member of Light Microfinance for over five years. As the primary wage earner of a six-member family, she was in dire need of income augmentation. She didn’t start in cattle rearing, but with the first of her loans from Light Microfinance, she started vegetable farming. Eventually, her business acumen enabled Chauhan to expand. Her income increased and she has even planned to hire two employees.

Light Microfinance offers a single loan product via a joint liability group model. Groups are typically made up of three to ten women. The financial institution constantly evaluates and adapts its single product offering to ensure that it remains relevant to the target client base.

Nasreenbano always wanted to support her family financially but didn’t have the means to do so. She came to know about Light Microfinance through other women in her village and joined a lending group served by the institution. She availed the loan to set up a power loom business, which provided her a good monthly income and gives her a strong say in the family decision-making.

Besides loans, Light’s product includes life insurance and medical insurance  as well as financial literacy for all clients via group trainings.

Alex Jeffery, Investment Associate of Incofin Investment Management comments: We are delighted to conclude this investment in Light Microfinance. We believe more and more underprivileged women will benefit fro mthis investment and improve their livelihood.

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.

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