Maj Invest Financial Inclusion Fund III, which is Maj Invest’s latest financial inclusion private equity fund, has made its first investment in SAVE Solutions in India, acquiring 19.7%. MIFIF III will be represented on the board of directors of the company.
SAVE Solutions is a profitable, fast growing financial services company based on the business correspondent model. The model is a fee-based business that uses low-cost outlets with a strong technological platform, franchised to third-party business correspondent agents or entrepreneurs. The company has a network of around 8,000 customer service points across the country catering to a customer base of more than 14 million. These customer service points offer banking services on behalf of banks which are partnered with SAVE to the underserved population in rural and semi-urban areas of India.
With an objective of furthering growth through financial inclusion, SAVE has leveraged its extensive network to offer loan products to its clients using digital financial services via its fully owned subsidiaries SAVE Financial Services Pvt. Ltd. (MSME) and SAVE Microfinance Pvt. Ltd. (MFI).
SAVE intends to use the funds for expanding its business correspondent model as well as the two lending entities to fulfil the growing customer demand and further enhance the last mile connectivity in a cost-efficient manner.
Maj Invest Financial Inclusion funds are sector-focused private equity funds investing growth capital directly into financial institutions across Asia, Latin America and Africa. With the recent launch of its third fund, Maj Invest will continue to invest in financial institutions with strong focus on digital financial services that show resilience in such unprecedented times and promote financial inclusion in emerging economies.