New Delhi: Non-banking financial company Purple Finance has announced plans to acquire Saksham Gram Credit Private Ltd to expand into rural market.
Besides, the company has secured fund-raising commitments of Rs 108 crore in equity to support its next phase of growth.
The company’s board has given in-principle approval for the acquisition of Saksham Gram Credit as a wholly-owned subsidiary, subject to due diligence and regulatory approvals, Purple Finance said in a statement on Wednesday.
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The deal, via share swap, will mark Purple Finance’s entry into rural and semi-rural lending markets, it said.
“Our growth strategy is not limited to opening new branches. We are equally focused on evaluating strategic opportunities that can help us expand into new geographies, strengthen our portfolio, and add capabilities,” said Purple Finance chairman Amitabh Chaturvedi.
Incorporated in December 2019, Saksham Gram is among the largest business correspondents serving banks and NBFCs, offering microfinance and secured and unsecured business loans across rural and semi-urban India.
It operates 147 branches and over 31,000 microfinance centres across 74 districts in 10 states, serving more than 1.63 lakh customers with a workforce of nearly 900.
Read more: Regional curbs dampen microfin revival in South India as biz looks up
Following the acquisition, the combined entity’s Assets Under Management (AUM) are expected to touch around Rs 850 crore, it said.
The acquisition is expected to strengthen the company’s distribution network across Tier III and IV markets, particularly in southern India, supporting its long-term goal of becoming a small finance bank, the company added.
