MICROCAPITAL BRIEF: Belstar Microfinance Raises $48m in Equity to Boost Service to Women, Low-income Households in India

Belstar Microfinance, a non-banking financial company controlled by India-based Muthoot Finance, recently raised INR 3.5 billion (USD 47.6 million) in equity. An unspecified portion of the funds are from Affirma Capital, a Singapore-based private equity firm that is a first-time investor in Belstar. The remainder of the new equity comes from Muthoot and another previous investor in Belstar, Denmark-based Maj Invest.

The Managing Director of Belstar, Kalpanaa Sankar, said of Affirma Capital, “Their 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.”

Founded in 1988, Belstar is a microfinance provider that aims to economically empower women and low-income households in India. As of March 2020, the company reported total assets of INR 25.2 billion (USD 343 million) and one-year total income of INR 5.01 billion (USD 68.1 million). Belstar serves approximately 1.2 million active customers via 566 branches.

Founded in 2002, Affirma Capital manages approximately USD 3.5 billion in assets as of 2020 and has invested about USD 6 billion over time across Africa, Asia and the Middle East.

Founded in 2005, Maj Invest manages total assets of DKK 713 million (USD 113 million) with a one-year profit before tax of DKK 143 million (USD 22.6 million) in 2020.

Muthoot Finance was founded in 1939. As of March 2021, the company reported total assets of INR 63 billion (USD 855.6 million) and total quarterly revenue of INR 3 billion (USD 40.2 million). Muthoot Finance is a holding of Muthoot Pappachan, which was established in 1887 and is active in the financial services, hospitality, automotive, real estate, infrastructure, information technology and healthcare sectors.

By Bradley Shulman, Research Associate

Sources and Additional Resources

Mint article
https://www.livemint.com/companies/news/muthoot-finance-subsidiary-to-raise-rs350-cr-from-affirm-capital-maj-invest-11629885623814.html

Belstar homepage
https://www.belstar.in/

Belstar 2019-2020 financial statement
https://www.belstar.in/pdf/Belstart-Annual-Report-1920.pdf

Affirma Capital homepage
https://affirmacapital.com/

Maj Invest homepage
https://majinvest.com/

Maj Invest 2020 financial statement
https://majinvest.com/media/28720/annual-report-2020_web.pdf

Muthoot homepage
https://www.muthootfinance.com/

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