Fusion Finance Limited

Fusion Micro Finance Limited (also known as Fusion Microfinance) is a non-banking finance company registered as a microfinance institution (NBFC-MFI) that provides small-ticket, collateral-free loans to women entrepreneurs from economically underserved households in rural and semi-urban India. The company operates on a joint-liability-group lending model, where small groups of women, typically five to seven members, come together and stand as guarantors for one another's loans, a structure widely used across the Indian microfinance sector to extend credit to borrowers who otherwise lack access to formal banking. Incorporated in 1994, the company built a nationwide branch network and, as of June 2022, served around 2.9 million active borrowers through 966 branches spread across 377 districts in 19 states and union territories. Over the five years to fiscal 2021, its gross loan portfolio grew at a compound annual rate of nearly 54 percent, among the fastest expansion rates recorded by the ten largest NBFC-MFIs in India at the time. Its credit rating was upgraded over this period, moving from a BBB rating in 2017 to an A- rating by 2022 across multiple rating agencies, reflecting an improving credit profile as the loan book scaled. By assets under management as of June 2022, the company ranked among the leading NBFC-MFIs in the country and was one of the youngest firms in that peer group, having reached this scale within a shorter operating history than many older competitors. Its growth has been driven by deep rural penetration, a diversified lender base for its own borrowings, and a technology-enabled loan origination and collection process built to serve a high volume of small-ticket borrowers efficiently.

The company raised roughly Rs 331 crore from anchor investors at the IPO's upper price band of Rs 368 per share, with participation from institutions including Nomura Trust, ICICI Prudential, Nippon Life, Aditya Birla Sun Life, HDFC Life Insurance, Motilal Oswal Mutual Fund, Kotak Mahindra Life Insurance, Bajaj Allianz Life Insurance and BNP Paribas Arbitrage, among others.