Belstar Microfinance Limited, a subsidiary of Muthoot Finance Limited (Muthoot Group) has signed definitive agreements to raise primary equity of Rs 350 crore from new investor Affirma Capital and existing investors Muthoot Finance and Maj Invest. This equity raise is subject to obtaining required regulatory approvals, the company said in a press release.

This round of funding is being led by funds advised by Affirma Capital who will invest Rs 300 crore out of a total round of Rs 350 crore.

George Alexander Muthoot, Managing Director, Muthoot Finance said, “This funding will help Belstar to grow its loan book and accomplish its vision of becoming a socially responsible microfinance institution working towards entrepreneurship and economic empowerment of women “

Dr Kalpanaa Sankar, MD of Belstar, has been leading this Company since its inception. “Affirma Capital's investment in Belstar during such a difficult pandemic period validates the large market opportunity in microfinance space and Belstar’s potential to capitalise on the opportunities,” said Dr Kalpanaa Sankar.

This is the second private equity investment into Belstar, with Maj Invest investing in 2018. Maj Invest is a Danish asset management company with about $17 billion under management, providing services in asset management and private equity (including financial inclusion business).

“We look forward to working closely with Belstar and assisting them in their next phase of growth”, said Udai Dhawan, Partner at Affirma Capital.

InteQuant Advisors was the sole financial adviser to the transaction.