SAVE Solutions intends to use the funds to expand its direct lending through subsidiaries SAVE Microfinance and SAVE Financial Services.

Danish asset management firm Maj Invest bought 18 per cent equity in an Indian financial inclusion company SAVE Solutions for $16 million.

SAVE Solutions, which started its journey from Gaya in 2009, is a business correspondent for State Bank of India, Bank of India, and Bank of Baroda. The company intends to use the funds to expand its direct lending through subsidiaries SAVE Microfinance and SAVE Financial Services. It will also use part of the funds to strengthen IT infrastructure.

SAVE Solutions, intends to make financial services accessible to undeserved rural communities by offering them savings and lending products through its wide network of touchpoint located within their vicinity. The group has 12 million clients in the rural areas.

Gourav Sirohi, Chief Financial Officer, SAVE Solutions, said: “We aim to take the total portfolio to up to $601.6 million in the next four years. The fresh capital may be sufficient for the next two-and-a-half years.”