Save plans to use the funds to provide lending services to micro, small and medium enterprises (MSMEs) and micro-loans, managing director Ajeet Kumar Singh told ET. “A new investor will come along,” he said.
While several investors have shown interest, negotiations with three of them are at an advanced stage, and two of these are external funds.
One of them has started surveying the field since Wednesday, Singh said. “Now, value will hold the key,” he said. Belgium’s Incofin Investment Authority and Denmark’s Maj Invest are partners in Save, which serves approximately 21 million rural people in more than 8,600 villages across 559 districts in the country.
Apart from acting as a business correspondent partner for banks, the company has two wholly-owned subsidiaries – Save Financial Services and Save Microfinance – for lending to the MSME and microfinance sectors, respectively. He also owns a home loan company called New Habitat Finance and Housing Development.
The group’s combined loan portfolio is around 1,100 kroner, with the largest microfinance portfolio at 900 kroner.
Save’s microfinance business has flourished over the past two years. In July 2020, it was only 100 million.
The group started its journey in 2009 as Save Society. He started working as a business reporter for SBI in 2010, three years before joining Save Solutions. He also works for Bank of Baroda, Bank of India, Punjab National Bank and two regional rural banks as their agent to provide banking services in places where bank branches are not available.
The group also cooperates with banks to provide loans to borrowers at the bottom of the pyramid.