Fusion Finance targets Rs 10000 cr AUM by March 2027 after completing Rs 800 cr rights issue
Summary
The stock now trades at Rs 157.MD & CEO Sanjay Garyali said the capital raise strengthens Fusions ability to scale both its microfinance and secured MSME books. Fusion tightened its credit filters early through an aggressive write-off policy, lower exposure limits, a ban on lending to delinquent customers and caps on the number of lenders serving each borrower. Fusion lends only against self-occupied residential or commercial property, mainly to small shopkeepers, with ticket sizes of Rs 525 lakh. RBI rules now allow NBFC-MFIs to build secured MSME portfolios up to 40% of their books, which he described as a major opportunity. Fusion plans to scale this business within its current licence rather than seek a small finance bank permit.Technology upgrades are improving operating efficiency.