The Indian Government’s ambitious drive for financial inclusion was recently included in the Guinness Book of World Records for number of bank accounts opened in the shortest period of time. Yet universal inclusion still remains elusive with the World Bank estimating that to-date only six per cent of Indian adults over the age of 15 have borrowed from a financial institution.
According to India’s 2011 census, approximately 70 per cent of India’s population live in rural communities. Extending financial inclusion to this segment can truly make the difference for the lives of individuals and future prosperity of the country.
At the heart of the drive to extend the reach and access of financial tools is Fincare. As one of the largest and fastest-growing microfinance platforms in India, it currently provides financial services to over 5.8 million emerging consumers, the majority of whom are women in rural areas – both of which comprise two of the most underserved segments. The company has achieved a 79 per cent annual growth rate in its assets under management over the last three years, a testament to why Fincare sits firmly at the intersection of profit with purpose.
It is one of only ten institutions granted a small bank license by the Indian government, in 2017 the company launched its banking operations at over 25 locations with plans to increase the number to 500 by year end. These institutions guarantee at least 50 per cent of loan portfolios are comprised of loans and advances up to $37,500. Small finance banks can perform all the operations of normal commercial banks, but target a low-income segment providing access to smaller sums of credit and the ability to make deposits.
‘[The investment] will enable us to continue to build the infrastructure required to accelerate our growth, in line with our mission to facilitate a lifetime of progress at the base of the pyramid through financial and social inclusion,’ says Rajeev Yadav, Group CEO of Fincare.
With a deep history in financial inclusion in India gained through partnering with some of the country’s preeminent financial institutions, the LeapFrog team are set to back Fincare by helping the Company make history and an outsize contribution to India’s goal of universal financial inclusion.
According to India’s 2011 census, approximately 70 per cent of India’s population live in rural communities. Extending financial inclusion to this segment can truly make the difference for the lives of individuals and future prosperity of the country.
At the heart of the drive to extend the reach and access of financial tools is Fincare. As one of the largest and fastest-growing microfinance platforms in India, it currently provides financial services to over 5.8 million emerging consumers, the majority of whom are women in rural areas – both of which comprise two of the most underserved segments. The company has achieved a 79 per cent annual growth rate in its assets under management over the last three years, a testament to why Fincare sits firmly at the intersection of profit with purpose.
It is one of only ten institutions granted a small bank license by the Indian government, in 2017 the company launched its banking operations at over 25 locations with plans to increase the number to 500 by year end. These institutions guarantee at least 50 per cent of loan portfolios are comprised of loans and advances up to $37,500. Small finance banks can perform all the operations of normal commercial banks, but target a low-income segment providing access to smaller sums of credit and the ability to make deposits.
‘[The investment] will enable us to continue to build the infrastructure required to accelerate our growth, in line with our mission to facilitate a lifetime of progress at the base of the pyramid through financial and social inclusion,’ says Rajeev Yadav, Group CEO of Fincare.
With a deep history in financial inclusion in India gained through partnering with some of the country’s preeminent financial institutions, the LeapFrog team are set to back Fincare by helping the Company make history and an outsize contribution to India’s goal of universal financial inclusion.
Location: Saudi Arabia, Riyadh Region, Riyadh
Employees: 1001-5000
Total raised: $75.04M
Founded date: 2007
Investors 1
| Date | Name | Website |
| - | Leapfrog I... | leapfrogin... |
Funding Rounds 1
| Date | Series | Amount | Investors |
| 07.03.2017 | - | $75.04M | TA Associa... |
Mentions in press and media 13
| Date | Title | Description |
| 25.07.2024 | AU Small Finance Bank’s board approves proposal to make an application to RBI for transition to universal bank | The Board of Directors of AU Small Finance Bank on Thursday approved a proposal to make an application to the Reserve Bank of India for transition from a Small Finance Bank (SFB) to a universal bank. Read more:Fincare to remain a unit of AU... |
| 04.04.2024 | SFBs seek glide path from RBI to become universal banks citing eligibility | Chief executives of various Small Finance Banks (SFBs), which met the Reserve Bank of India recently, have urged for a glide path to become universal banks, as most of them are eligible for such a conversion having completed five years of o... |
| 02.04.2024 | Banks, NBFCs must uphold standards with Fintechs: RBI Dy Governor D G Rao | The underwriting standards and pricing of risk of banks and Non-Banking Financial Companies (NBFCs) should not be affected while onboarding customers through fintech partners, noted M Rajeshwar Rao, Deputy Governor of the Reserve Bank of In... |
| 02.04.2024 | Fincare Small Finance Bank merges with AU Small Finance Bank With an emphasis on excellent post-merger customer service and smooth integration, the consolidation expands the client base and improves t... | - |
| 01.04.2024 | Should companies keep the public informed about the health of their CEO? | On March 22, the Princess of Wales, Kate Middleton, disclosed that she was undergoing treatment for cancer following a major abdominal surgery in January. The two-minute-15-second recorded video shocked the world, but ended months of conspi... |
| 01.04.2024 | Fincare SFB merges with AU SFB; consolidation enhances distribution network | AU Small Finance Bank (AU SFB) on Monday amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector. In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fi... |
| 26.03.2024 | Improving confidence | After a decade of rising non-performing assets (NPAs) and lax underwriting standards, particularly on corporate loans, the Indian banking sector is now in good health, with rising profits and the restoration of investor trust. This was reaf... |
| 25.03.2024 | HDFC Bank's Strategic Moves in Education and Infrastructure Sectors | HDFC Bank, a major player in the financial sector, has recently made significant strategic moves in both the education and infrastructure sectors. In a bold move, the bank completed a Rs 9,553 crore stake sale in its education finance subsi... |
| 19.03.2024 | HR, technology integration key challenge for Fincare-AU SFB merger | The integration of technology and human resources could be key challenges in the merger of AU Small Finance Bank and Fincare Small Finance Bank (SFB), slated to take effect from 1 April 2024, analysts have said. Jaipur-headquartered AU SFB ... |
| 19.03.2024 | HDFC Bank raises Rs 2,910 cr via infrastructure bonds for funding projects | The country’s largest private bank, HDFC Bank, has raised Rs 2,910 crore through infrastructure bonds for funding projects in areas like power, roads, and affordable housing projects. The coupon was fixed at 7.65 per cent for bonds which ha... |
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