Muthoot Fincorp, a nonbanking finance company of Muthoot Pappachan Group, is in talks with PE funds to raise 500 crore. Funds would be deployed to expand its core business of financing against gold as well as provide loans to small and medium enterprises. The NBFC had been elevated by rating agency Crisil early this year to ‘P1+’ rating in the short-term segment, the highest rating possible, while its long-term rating also has been upgraded.
With more than 950 branches spread across the country, Fincorp services over 40,000 daily customers on an average. It has recently tied up with US based Accion International to boost its lending to microfinance sector, the group’s new business vertical, which could eventually be hived off as a separate subsidiary.
