Banking News

Pahal receives $12 million investment from DFC for rural financial inclusion


Pahal, a microfinance institution based in Gujarat, has received $12 million investment from the U.S. International Development Finance Corporation (DFC) for promoting financial inclusion in rural and semi-urban India. Under this agreement, Pahal will have access to $12 million loan for up to 8 years through External Commercial Borrowing (ECB) and it will use the funds to expand its microfinance loan portfolio, particularly targeting women entrepreneurs in Gujarat. The firm co-founded by Purvi Bhavsar and Kartik Mehta has a total AUM of Rs 1,600 crore.

“This partnership will expand the available capital for women-owned and led enterprises, addressing the financing barriers they often encounter,” Purvi Bhavsar, Co-founder and Managing Director of Pahal. Whereas Mehta said that DFC’s support to Pahal in this endeavour will go a long way in supporting our vision and mission of elevating the vulnerable section of the society..

Based in Ahmedabad, Pahal is registered with the Reserve Bank of India as a Non-Banking Financial Company that provides microfinance services to low-income households. It has over 300 branches with over 2,500 employees and serves over 5,00,000 active clients.

“DFC is proud to support increased access to financing in India, especially among women entrepreneurs in rural and semi-urban areas. This loan will support the expansion of microfinance lending to women at the base of the pyramid,” said James Polan, Vice President of DFC’s Office of Development Credit.


Source link