With a significant increase in credit demand domestically, Save plans to use the funds to expand its lending service to micro, small and medium enterprises (MSMEs) and micro credit lenders.
The company is looking to raise over Rs 300 crore – to fund its debt business, managing director Ajeet Kumar Singh told ET. “A new investor will come along,” he said.
While several investors have shown interest, negotiations with three potential investors are at an advanced stage. Two of these funds are external. One of them will start field level survey from 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. The promoters hold about 60% in the company.
Apart from acting as a business correspondent partner for banks, the company has two wholly owned subsidiary companies — Save Financial Services, Save Microfinance — to lend to the MSME and microfinance sectors, respectively.
It also has a home loan arm — New Habitat Home Financing and Development.
The group’s cumulative loan portfolio stands at around Rs 1,100 crore, with the microfinance portfolio being the largest at Rs 900 crore.
Save’s microfinance business has flourished over the past two years. As of July 2020, microfinance stood at just Rs 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. They also work for Bank of Baroda, Bank of India, Punjab National Bank and two regional rural banks as their agents for providing banking services in places where bank branches are not available.
The group also cooperates with banks to pay the bottom of the pyramid lenders.