December 2, 2024: CreditAccess Grameen, a leading microfinance institution, has secured €25 million from the German Investment Corporation (DEG) and ₹170 crore from Citi through an innovative co-financing facility to address the pressing financing needs of rural women and micro-entrepreneurs.
This latest round of funding blends development finance with private-sector investment, providing a robust financial framework to bolster the institution’s long-term growth strategy.
Nilesh Dalvi, Chief Financial Officer of CreditAccess Grameen, emphasized the importance of this funding structure, stating, “This strategic move positions us well to navigate macroeconomic cycles, ensuring a strong foundation for sustainable growth in the coming years.” He further noted that the increasing share of foreign borrowings plays a pivotal role in enhancing the firm’s liquidity, asset-liability management, and overall financial resilience.
Neeraj Kumar, Managing Director and Head of Corporate Banking, India Sub-Continent at Citi, also weighed in on the co-financing arrangement. He highlighted that the initiative aligns with Citi’s financial inclusion goals in India, particularly focusing on empowering women micro-entrepreneurs. Citi’s commitment to social finance aims to provide access to basic services and economic opportunities for 15 million low-income households, including 10 million women, across emerging markets.
CreditAccess Grameen, which transitioned into a Non-Banking Financial Company (NBFC) in 2007-08, has consistently focused on delivering tailored financial products for women in rural India. The institution has provided essential loans for income-generating activities, home improvements, two-wheeler purchases, and gold-backed loans.
CreditAccess Grameen secures €25 million from the German Investment Corporation (DEG) and ₹170 crore from Citi through an innovative co-financing facility
Today, CreditAccess Grameen operates across 398 districts in 16 Indian states, serving more than 2,000 branches. This extensive network enables the firm to effectively reach and support marginalized communities. As the firm grows, its focus on women borrowers remains at the heart of its mission to foster financial inclusion in rural India.
Karin Homermann, Vice-President of DEG, a key partner in the funding, praised the collaboration, stating, “We would like to express our gratitude towards the CA Grameen team for their great cooperation in bringing the deal to the finish line. We are proud to be part of the high impact generated by CA Grameen’s financing of women borrowers in rural India.”
Founded in 1999 by Vinatha Reddy and Suresh Krishna, CreditAccess Grameen began as a project under the T. Muniswamappa Trust in Bengaluru. Since then, the institution has transformed into a major player in the microfinance sector, providing financial opportunities to those who need it the most.
This latest funding round, which includes a €25 million contribution from DEG and a Rs 170 crore co-financing arrangement with Citi, marks another milestone for CreditAccess Grameen as it continues to drive financial inclusion across India.
