Offshore investors provide funds to Annapurna Finance, a company backed by Piramal Alternatives
In the bustling world of Indian finance, Annapurna Finance, a Non-Banking Financial Company (NBFC) specialising in microfinance (MFI), has secured a significant investment from an unnamed offshore investor. This investment comes amidst a surge in foreign interest in Indian NBFC-MFIs, as reported by various financial publications.
While the specific purpose of the fresh capital for Annapurna Finance remains undisclosed, the investment underscores the growing confidence of global investors in the Indian NBFC-MFI sector.
The investment in Annapurna Finance is part of a broader trend. Recent data shows that offshore investments in Indian NBFC-MFIs primarily took the form of overseas syndicated loans rather than direct equity investments from venture or private equity funds in 2025. This trend is reflected in the $3.67 billion raised by Indian NBFCs through overseas syndicated loans, more than double the $1.64 billion raised in 2024 [1].
While the identity of the offshore investor backing Annapurna Finance is not revealed, it is worth noting that several prominent venture firms are actively investing in the Indian fintech and NBFC sectors. These include Aavishkaar Venture Capital, known for transforming NBFCs and mature MFIs, as well as BEENEXT, Better Capital, Blume Ventures, Accion Venture Lab, Elevar Equity, Quona Capital, and Flourish Ventures [3].
Annapurna Finance extends credit primarily for income-generating activities of women and also provides loans to micro, small, and medium enterprises (MSMEs) and individuals. The company's focus on women empowerment and MSMEs aligns with the mission of several venture funds active in the Indian fintech and NBFC sectors, such as Aavishkaar and Elevar, which are internationally recognized for their work in microfinance.
It is important to note that this is not the only instance of a PE-backed NBFC raising capital from an offshore investor. SK Finance, another NBFC, is also raising capital from an offshore investor before its planned Initial Public Offering (IPO). Similarly, Namdev Finvest, a BII-backed NBFC-MFI, is seeking funding from an offshore investor [2].
However, the specific amount of fresh capital being raised by Annapurna Finance and the identity of the offshore investor remain undisclosed at this time.
References:
[1] Livemint.com, "Indian NBFCs raise $3.67 billion through overseas syndicated loans in 2025", 2026.
[2] Business Standard, "SK Finance to raise capital from offshore investor before IPO", 2026.
[3] YourStory.com, "Offshore investments in Indian NBFC-MFIs: A growing trend", 2026.
This investment in Annapurna Finance highlights the increasing interest of global investors in the Indian NBFC-MFI sector, as they recognize its potential in business ventures, such as microfinance. The investment also indicates a shift in investing strategies, with offshore investments predominantly coming in the form of overseas syndicated loans in 2025.
