ImpactAlpha, April 25 – Arman Financial Services offers microfinance, small business, and two-wheeler vehicle loans to India’s unbanked and caters to rural customers. “The most successful poverty reduction measures are those that empower the poor to enrich their livelihoods,” Arman’s Jayendra Patel said earlier this year. “We are convinced that a majority of the country’s poor do not need sops or subsidies; what they need is access to ‘informed debt’.” The company pairs loans with business advice, cash flow management and growth opportunities for Indians running livelihood businesses. The new capital is from SAIF Partners, which is picking up a 24.8% stake in publicly listed Arman. SAIF, a seed and growth-stage equity investor, made the investment through its $350 million fifth fund.
- Reach… Arman operates more than 100 branches in five Indian states and has a loan portfolio of about $65.4 million.
- Microfinance IPOs… India’s regulatory environment has tightened since the 2010 microfinance crisis. Arman started in 1992 and went public on the Mumbai Stock Exchange in 1995.