Siguler Guff Invests Rs 240 Crore in Spandana Sphoorty
Private markets investment firm Siguler Guff and Company has announced an investment of Rs 240 crore for an approximate 3.5% ownership stake in Hyderabad-based microfinance Non-Banking Financial Corporation (NBFC), Spandana Sphoorty Financial Ltd. The investment reinforces Siguler Guff’s belief in the company's growth potential, as stated by Aviral Jain, Managing Director and Head of India at the firm.
Spandana Sphoorty, known for offering income-generation loans predominantly to women through a joint liability group model, has seen significant growth in recent years. The company's Assets Under Management (AUM) reached around Rs 11,970 crore as of March. Additionally, Spandana has managed to increase its return on assets from 1.6% to 4.5% over the last two fiscal years.
Siguler Guff's investment in Spandana Sphoorty aligns with its history of backing financial institutions and consumption-oriented businesses in India, such as City Union Bank, Manappuram Finance, and Repco Home Finance. The firm’s other investments in the country include affordable fashion retailer Baazar Kolkata, health-tech platform Relisys, electricals retailer Luker, hospital chain Sterling Hospitals, and social media and news platform Verse Innovation.
Shaun Khubchandani, Partner and Co-Head of Emerging Markets at Siguler Guff, expressed excitement about deepening the firm's commitment to India. Siguler Guff manages over $16 billion in assets and continues to focus on promising growth opportunities in the region.
