Rural financier Save Group raises $13 million from Maj, Incofin

Rural area focused financier Save Group on Wednesday said it has raised $13 million from global asset managers Incofin and Maj Invest.

The company, which serves over 25 million consumers through its business correspondent network, is keen to expand its lending activities which include micro loans, loans to small businesses and affordable housing through dedicated subsidiaries, as per a statement.

The funding includes Incofin India Progress Fund putting in $10 million and Maj Invest Financial Inclusion Fund III K/s taking a $3 million bet in March 2024.

Maj's investment was in Save Solutions, the holding company of the group, while Incofin invested in its micro loans focused wholly-owned subsidiary Saggraha Management Services, the statement said.

"Beyond strengthening our ability to expand our loan book, this infusion emboldens our pursuit of delivering high quality financial services in the rural underserved segment," Save Solutions' co-founder and director Ajit Kumar Singh said."We are quite impressed with Save's diversified product offerings. It's one of its kind in India," Incofin's partner and regional director for Asia Aditya Bhandari said.

The group's assets under management stood at Rs 1,962 crore as of March 2024, the statement said, adding that it aims to take it to Rs 18,000 crore in the next five years.