Incofin India Progress Fund (IPF) and Maj Invest Financial Inclusion Fund III K/s Invest USD 13 million in SAVE Group
FinTech BizNews Service
Mumbai, May 21, 2024: International asset management companies Incofin and Maj Invest collectively invest USD 13 million in India’s leading rural financial services conglomerate, SAVE Group. The funding comes from Incofin India Progress Fund and Maj Invest Financial Inclusion Fund III K/s.
Established in 2009, SAVE has emerged as a trailblazer in India’s Banking Business Correspondent (BC) Network, serving over 25 million customers nationwide. Under the leadership of Ajeet Kumar Singh, Pankaj Kumar and Ajay Kumar Sinha, SAVE has diversified into a robust rural financial services conglomerate, extending its reach deep into rural communities.
Leveraging its extensive network, SAVE plans to expand its lending verticals through its wholly owned subsidiaries, providing Microfinance Loans, Secured MSME Loans and Affordable Housing Loans.
Maj Invest Financial Inclusion Fund III K/s previously infused approximately USD 3 million into SAVE Solutions, the Holding Company of SAVE Group in March 2024. Now, IPF’s investment of USD 10 million comes into SaGgraha Management Services, a wholly owned subsidiary of SAVE specialising in Microfinance Loans through the BC model sharing the commitment to empowering rural communities through improving financial access.
Ajeet Kumar Singh, Co-Founder and Director of SAVE Solutions Private Limited, expressed enthusiasm stating: “We are delighted to partner with Incofin IPF and grateful for Maj Invest’s continuous support. Beyond strengthening our ability to expand our loan book, this infusion emboldens our pursuit of delivering high quality financial services in the rural underserved segment. We will benefit immensely from Incofin’s and Maj Invest’s global experience and value creation and eagerly anticipate our collaboration with them!”.
Siva Vadivelazhagan, Director at Maj Invest, comments “We are excited about the opportunity to invest in SAVE Solutions and recognize their potential to revolutionize rural finance on a large scale. Together, we aim to amplify the impact of financial inclusion initiatives, empowering communities nationwide.”
Aditya Bhandari, Partner & Regional Director, Asia Equity, Incofin, emphasised the strategic alignment between the SAVE mission and Incofin core values. "SAVE & SaGgraha’s commitment to providing accessible financial services to underserved populations resonates deeply with Incofin’s ethos. We are quite impressed with SAVEs diversified product offerings. It’s one of its kinds in India. We are excited to partner with the group in its mission of inclusive finance to rural masses.”.
As of March 2024, SAVE Group reported an AUM of ~INR 1,962 crores with 522 branches spanning 17 states, aiming to reach a Group AUM of ~INR 18,000 crores in the next five years. At the same time, SaGgraha reported a BC AUM of INR 464 crores and Co-lending AUM of INR 546 crores (Managed for SAVE Microfinance) with 237 branches across 7 states, targeting an AUM of INR 5,000 cr in the next five years.
