UK-based investment fund Greater Pacific Capital (GPC) has raised its stake in one of Muthoot Pappachan Group’s microfinance subsidiaries, Muthoot Microfin. It has invested $10 million in the finance company, taking its shareholding to 16.6 per cent from the earlier 14.4 per cent. 

This is the second-time investment GPC has invested in Muthoot Microfin, after investing $50 million last December. 

“GPC’s second round of capital investment is a vote of confidence on the resilient performance of Muthoot Microfin and its growth opportunities," Thomas John Muthoot, chairman of Muthoot Pappachan Finance group claimed in a statement. 

With the current infusion, Muthoot Microfin will work on meeting its growth requirements. The financing firm claim to have distributed loans among 2.3 million active borrowers in the country. Majority of these recipients are women and close to 1 million of them have downloaded the lender's Muthoot Mahila Mitra app for their financial requirements.

In the financial year (FY) 2022, the firm witnessed a 21.6 per cent yearly jump in operational revenue, taking it to Rs 82.5 crore. It also registered a six-times yearly growth in the profit margin. With an asset management of Rs 7,300 crore, the firm works in 18 states with 1000 branches. 

“Post covid, Muthoot Microfin has seen a rapid growth in credit offtake. The portfolio originated post the second covid wave (after June 2021), accounting for 80 per cent of the book as on September is behaving very well with just 0.16% non-performing assets," Muthoot added.