May 22, 2024: SAVE Group, an end to end banking services provider focussed on serving rural communities has raised $13 million from Incofin India Progress Fund and Maj Invest through their Incofin India Progress Fund and Maj Invest Financial Inclusion Fund III K/s.
Early in March 2024, Maj Invest Financial Inclusion Fund III K/s infused $3 million in SAVE Solutions, the holding company of SAVE Group, while IPF invested $10 million in SaGgraha Management Services, a subsidiary of SAVE Group specializing in microfinance loans for rural communities.
SAVE Group which claims to have 10000+ customer points plans to deploy the new investments to expand its lending verticals through its subsidiaries, offering microfinance loans, secured MSME loans, and affordable housing loans.
Siva Vadivelazhagan, Director at Maj Invest said “We are excited about the opportunity to invest in SAVE Solutions and recognise their potential to revolutionize rural finance on a large scale. Together, we aim to amplify the impact of financial inclusion initiatives, empowering communities nationwide.”
SAVE Group target an AUM of Rs.18,000 Crores in next Five Years
Founded in 2009, SAVE Group is engaged in offering accessible and high-quality financial services to underserved rural communities. The group has 522 branches spread in 17 states. In March 2024, SAVE reported an asset under management of about Rs 1,962 crore, with a target of Rs 18,000 crore within five years.
Meanwhile, SaGgraha reported “a BC Asset Under Management (AUM) of Rs 464 crore and a Co-lending AUM of Rs 546 crore”, managed for SAVE Microfinance, with 237 branches across 7 states. It expects an AUM of Rs 5,000 crore in the next five years.
“We are delighted to partner with Incofin IPF and grateful for Maj Invest’s continuous support. 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,” Ajeet Kumar Singh, Co-founder and Director of SAVE Solutions Private Limited, said.
“We will benefit immensely from Incofin’s and Maj Invest’s global experience and value creation and eagerly anticipate our collaboration with them,” Ajeet added.
SAVE provides micro-credit to women entrepreneurs for income generating activities through SAVE-MFI and Micro, Small, and Medium Enterprise (MSME) loans against collaterals for those with informal source of income.
