EFL Secures Rs.400 Crore in Series B funding to boost MSME financing
EFL (Electronica Finance Limited) has secured Rs.400 Crore in an equity Series B Funding round headed by LeapFrog Investments and other investor participants like Aavishkaar Capital.
Encourage Capital which is a US-based impact asset manager, was the first institutional equity investor in EFL (Electronica Finance Limited). EFL is a provider of loans to MSMEs (Micro, Small, and Medium enterprises) to boost business financing.
The secured funds will strengthen the balance sheet of the company and provide a good foundation for the next phase of expansion, EFL stated.
As per the EFL statement, this secured new capital will help in boosting the MSME financing which accelerates the manufacturing segment growth potential in India.
EFL founded in 1990, is a Pune based firm that offers loans on various products like machine loans, working capital loans and rooftop solar loans. EFL also provides loans such as microloans in semi-urban and rural India against the properties. EFL’s aim is to provide sustainable financial inclusion by offering these loans.
In a statement, the company said, it has grown its Assets Under Management three times more over the preceding 5 years. EFL’s AUM (Assets Under Management) now stands at more than Rs.40 crores and it is expected to increase with a CAGR of around 35% over the upcoming 3 years.
