Nuveen’s Global Impact Strategy Takes Stake in India Microfinance Lender Annapurna
Nuveen, the $1.2 trillion AUM investment manager of TIAA announced today that its Global Impact Strategy has invested in Annapurna Finance Private Limited (AMPL), one of India’s leading microfinance institutions (MFI).
According to Nuveen, AMPL has led the industry in innovation and customer engagement, launching products and services aimed at increasing access to basic financial needs, including group loans, micro business loans, and individual lending products. The company is one of the largest MFIs in India, with a national footprint and a loan portfolio of over $500 million, serving over 1.7 million mostly female entrepreneurs with small working capital loans in rural areas.
Nuveen will join AMPL’s Board of Directors, and will play a role in driving the company’s strategy, helping AMPL to identify and execute on potential acquisitions as well as leveraging the company’s significant outreach to broaden its climate initiatives.
Nuveen’s Global Impact Strategy focuses on private equity investments, seeking to drive positive change in the sustainable development challenges of inclusive growth and resource efficiency. The strategy invests in companies ready to meet these challenges while also offering the potential for attractive risk-adjusted returns.
The AMPL investment marks the second for the strategy, following Nuveen’s investment in bipolar lead-acid battery architecture technology company Advanced Battery Concepts LLC in October 2020.
Radhika Shroff, Managing Director, Private Impact Investing at Nuveen, said:
“AMPL has differentiated itself in the industry by focusing on product diversification, digital innovation and geographic expansion, ensuring that rural entrepreneurs in India have the financial tools they need to run and grow their businesses. As a result, the company has continued to grow its portfolio during the COVID-19 pandemic, opening new branches, launching specialized outreach and education, and supporting its clients’ resiliency through the crisis.
“Today, over 80% of India’s lower middle-income class and below (around 640 million people) are financially excluded. However, by 2025, it is expected that 54 million people will be new consumers, creating a $600 billion consumption demand and $120 billion debt demand. Thus, AMPL is well-positioned to benefit from this and Nuveen’s investment will help the company execute its future growth plans.”
Gobinda Pattnaik, Managing Director at Annapurna Finance Private Limited, said:
“We are delighted to have received financial backing from a leading global investor like Nuveen. Over the last decade we have dedicated our efforts to support rural entrepreneurs with their financial needs and we are proud to have helped so many individuals across India. Nuveen’s expertise and funding will help us meet our expansion plans and we look forward to working with them to develop our climate initiatives.”