Fusion Finance Limited, a key player in India’s NBFC - Microfinance Institution (MFI) space, has successfully concluded its ₹800 crore Rights Issue, which garnered a robust 1.5x subscription rate. This marks a major milestone for the company and reflects strong investor confidence in its long-term growth trajectory, operational strength, and strategic leadership vision.

Robust Investor Response Highlights Market Confidence

The Rights Issue, which opened on 15 April 2025, attracted significant attention from existing institutional investors, notably Honey Rose Investment Ltd (an affiliate of Warburg Pincus LLC) and Creation Investments Fusion LLC. These long-term stakeholders reaffirmed their trust by subscribing to a substantial portion of the offering, underlining continued conviction in Fusion’s business fundamentals and future direction.

The issue involved 6,10,58,392 partly paid-up equity shares, priced at ₹131 per share (inclusive of a ₹121 premium). The total offering amounted to ₹799.86 crore, and the overwhelming subscription underscores the institutional faith in Fusion’s capacity to generate consistent value in the dynamic Indian financial ecosystem.

Strategic Capital Strengthening for Future Expansion

The company stated that the proceeds from the Rights Issue will enhance its capital adequacy ratio, positioning Fusion Finance among the most well-capitalized players in the Indian microfinance sector. This strong financial backing will help the company scale its operations, deepen rural outreach, and enhance technology-led solutions, particularly in the underserved and semi-urban markets.

Devesh Sachdev, Managing Director of Fusion Finance Limited, emphasized the importance of this milestone, stating:

“The strong response to our Rights Issue is a testament to the enduring trust of our shareholders in Fusion’s operational resilience and strength as a business. The additional capital will reinforce our balance sheet, enabling us to capitalize on the emerging opportunities while continuing to deliver sustainable value to all stakeholders.”

Strengthening Leadership to Drive Strategic Goals

In tandem with its capital raise, Fusion Finance has been enhancing its leadership team as part of its long-term growth strategy. One of the most notable developments in this direction was the appointment of Mr. Sanjay Garyali as the Chief Executive Officer.

Mr. Garyali, who has over 28 years of experience in the banking and finance sector, brings deep expertise in retail finance and a vision for scalable and sustainable growth. His leadership is expected to steer Fusion into its next phase of expansion, with a balanced focus on profitability, innovation, and social impact.

Commenting on the rights issue, Mr. Garyali remarked:

“The success of this Rights Issue reflects the strength of Fusion’s franchise and the trust of our shareholders. This milestone event will enable us to further strengthen our foundation as we drive the next phase of our journey, with a focus on scale, sustainability and long-term value creation.”

Long-Term Impact on Fusion’s Strategic Direction

The oversubscription of the Rights Issue is not just a financial boost but a validation of Fusion’s integrated business model that combines financial inclusion, risk management, and operational excellence. With this strengthened capital base, Fusion is expected to:

• Expand its loan book by penetrating deeper into underserved rural and semi-urban markets.

• Invest further in digital infrastructure and customer service platforms.

• Maintain robust asset quality and compliance as it scales.

This development also helps Fusion to remain competitive in the evolving NBFC landscape, where capital adequacy and operational resilience are critical to winning investor trust and borrower loyalty.

Final Thoughts

The successful closure of the ₹800 crore Rights Issue, coupled with leadership enhancement and strong institutional support, marks a turning point for Fusion Finance. It sets the stage for agile growth, improved service outreach, and higher value creation for shareholders and customers alike. In a sector where many microfinance institutions face capital constraints, Fusion’s achievement places it in an enviable position to lead the transformation of India’s financial inclusion ecosystem.

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