Fusion Finance

What Fusion Finance does

Fusion Finance Limited is a publicly listed Indian NBFC-MFI (NSE: FUSION), headquartered in New Delhi with a corporate office in Gurugram, that provides microfinance loans to rural and semi-urban women entrepreneurs through the Joint Liability Group (JLG) model across 30 states, alongside a secondary MSME lending vertical serving the "missing middle" segment in Tier 3 and Tier 4 markets. The company was founded in 2010 by Devesh Sachdev, received its NBFC-MFI license from the Reserve Bank of India in 2014, expanded into MSME lending in 2019, completed an IPO in 2022, and rebranded from Fusion Micro Finance Limited to Fusion Finance Limited in July 2024 to reflect its broader product portfolio.

The operating stack is built on a proprietary "Shakti" digital lending system that powers credit discipline, branch-level monitoring, and loan processing across both verticals, supported by a multi-cloud architecture for business continuity and selective AI/ML deployment for collection calls (delivering 15-20% efficiency gains) and fraud detection. Distribution is hybrid: a physical branch network (including 135 branches across 30 districts in Odisha serving 250,000 women) is augmented by a digital application portal, a toll-free customer helpline (1800-103-7808), a referral-based "Let's Grow Channel" Growth Partner program (0.40-0.60% incentive on disbursed amount), and a corporate agency insurance distribution arrangement with multiple insurers including ICICI Prudential, HDFC Life, Bajaj Allianz, and Kotak Mahindra.

The revenue model is principally interest income from microfinance disbursements (income generation loans, top-up loans, emergency loans) and MSME loans (Loan Against Property, secured and unsecured business loans, solar loans, machinery loans), supplemented by insurance commission income. As of FY26, the company reported revenue of ₹1,635.89 crore, AUM of ₹7,407 crore, and a return to profitability with a full-year PAT of ₹13.85 crore and Q4 FY26 PAT of ₹114.19 crore after a ₹1,224.54 crore loss in FY25. The company is backed by Warburg Pincus (32.83% via Honey Rose Investment Ltd) and Creation Investments (19.78%), and is navigating the regulatory headwind of the Bihar MFI Bill 2026, which affects approximately 19% of its portfolio.

Name

Fusion Finance

Legal name

Fusion Finance Limited

Website

https://fusionfin.com

Company type

Public

Founded year

2010

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Fusion Finance Limited is a publicly listed Indian NBFC-MFI providing microfinance loans to rural women entrepreneurs via the Joint Liability Group model and MSME lending in Tier 3/4 markets across 30 states, backed by Warburg Pincus and Creation Investments.

Ownership category

akta.pro rank

Product category

Microfinance / NBFC Lending

NAICS

Other Activities Related to Credit Intermediation (52239)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Microenterprise Group Lending (Joint Liability) (FSAKAGAH)

akta.pro secondary industries

Microfinance, Financial Inclusion & Inclusive Markets (BPAGABAM), Agricultural & Rural Microfinance (FSAKAGAG), SME, Microfinance & Financial Inclusion Facilities (BPADACAI)

Keywords

• Microfinance lending
• MSME business loans
• Joint liability group
• Rural financial inclusion
• Small business financing

Headquarters

HQ city

New Delhi

HQ country

India

HQ region

Asia

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Microfinance Lending: Income generation loans, top-up loans, and emergency loans to women entrepreneurs through JLG model. Core revenue stream from interest income on microfinance disbursements.
2. MSME Lending: Secured business loans (Loan Against Property), unsecured business loans, solar loans, and machinery loans to MSMEs in Tier 3 and Tier 4 markets.
3. Insurance Distribution: Corporate agency model providing life, general, and health insurance products through partnerships with ICICI Prudential, HDFC Life, Bajaj, Kotak, Magma HDI, and others. Commission income from insurance sales.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels7 records

Core offering

Fusion Finance Limited is an RBI-registered NBFC-MFI that provides microfinance loans (income generation, top-up, and emergency loans) to underprivileged women entrepreneurs in rural and semi-urban India through the Joint Liability Group (JLG) model. It also extends MSME lending products (secured and unsecured business loans, solar loans, machinery loans) to small businesses in Tier 3 and Tier 4 markets, and distributes life, general, and health insurance products through partnerships with multiple insurers.

Product overview

Fusion Finance operates as an NBFC-MFI offering a dual-product portfolio. The core microfinance vertical provides small loans to women entrepreneurs through the Joint Liability Group (JLG) model, including Income Generation Loans, Top Up Loans, Emergency Loans, and optional insurance cross-sells. The MSME vertical offers secured and unsecured business loans, solar loans, and machinery loans to the 'Missing Middle' segment in Tier 3 and Tier 4 markets. The company also distributes insurance products through partnerships with multiple providers. The proprietary 'Shakti' digital lending system powers the credit evaluation process across both verticals.

Differentiator

Problem solved

Functional benefit

Products and services

• Microfinance (JLG Model) Provides small loans to women entrepreneurs in rural and semi-urban areas through the Joint Liability Group (JLG) model of Grameen, supporting income generation, financial resilience, and entrepreneurship. Includes income generation loans, top-up loans, emergency loans, and optional insurance cross-sells.
• MSME Loans Provides Loan Against Property (LAP) and other business loans to MSMEs in Tier 3 and Tier 4 markets, offering secured and unsecured financing solutions to help businesses unlock property value for growth, expansion, and working capital. Includes secured business loans, unsecured business loans, solar loans, and machinery loans.
• Secured Business Loans (Loan Against Property) Term loans for small businesses requiring significant funds with longer tenures. Loan amounts range from INR 1,00,000 to INR 25,00,000 with tenures from 12 to 120 months.
• Unsecured Business Loans Short tenure term loans for small businesses and micro entrepreneurs with stable business and regular cash flows. Loan amounts from INR 100,000 to INR 500,000 with tenure up to 36 months (12 months for new loans, 6 months for top-up).
• Solar Loans Secured loans to help small businesses transition to solar energy, reducing costs and ensuring sustainability. Maximum loan amount INR 15,00,000 with tenure of 12 to 60 months.
• Machinery Loans Loans for machinery purchases and equipment financing for small businesses.
• Insurance Products Life, general, and health insurance coverage distributed through partnerships with multiple insurance providers (ICICI Prudential, HDFC Life, Bajaj Allianz, Kotak Mahindra Life, Magma HDI, Zurich Kotak, Aditya Birla Health, ACKO, ICICI Lombard). Maximum cover up to Rs. 2,00,000 for MFI group credit life and up to Rs. 25,00,000 for MSME single credit life.

Quantifiable outcome

• Collection efficiency of 99.66% achieved in Q4 FY26
• +4 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Eleven partnerships are on record, tiered minor and core.

• ICICI Prudential Life InsuranceminorOthersLife insurance partner providing coverage to Fusion Finance customers under corporate agency arrangement.
• ICICI Lombard General InsuranceminorOthersGeneral insurance partner for Fusion Finance's insurance distribution offerings.
• HDFC Life InsuranceminorOthersLife insurance partner providing coverage through Fusion Finance's corporate agency.
• Bajaj Allianz Life InsuranceminorOthersLife insurance partner for Fusion Finance's cross-sell insurance products.
• Kotak Mahindra Life InsuranceminorOthersLife insurance partner in Fusion Finance's insurance distribution network.
• Magma HDI General InsuranceminorOthersGeneral insurance partner providing coverage through Fusion Finance's corporate agency.
• Zurich Kotak General InsuranceminorOthersGeneral insurance partner for Fusion Finance's insurance offerings.
• Aditya Birla Health InsuranceminorOthersHealth insurance partner for Fusion Finance's insurance distribution.
• ACKO General InsuranceminorOthersGeneral insurance partner in Fusion Finance's insurance distribution network.
• MFIN (Microfinance Institutions Network)coreOthersIndustry association and Self-Regulatory Organization (SRO) for NBFC-MFIs. Fusion Finance is a member, with founder Devesh Sachdev elected as MFIN Chairperson.
• NGOs (53 partnerships)minorOthersPartnership with 53 NGOs supporting CSR initiatives across education, health, livelihood, and environmental sustainability programs.

Scale indicators16 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• CreditAccess Grameen: Largest listed JLG-based microfinance institution in India, operating in 16+ states with a portfolio of ₹20,000+ crore. Direct comparable on JLG model, rural women borrower base, and pan-India microfinance footprint.
• Spandana Sphoorty Financial: Listed Indian NBFC-MFI focused on JLG lending to low-income women. Same regulatory category (NBFC-MFI), similar rural-women borrower segment, and has navigated recent asset quality stress — useful turnaround comparison.
• Muthoot Microfin: Listed NBFC-MFI providing JLG microfinance loans to women entrepreneurs, part of the Muthoot Group. Comparable on MFI-led business model, regulatory classification, and similar AUM scale.
• Satin Creditcare Network: Listed NBFC-MFI with JLG microfinance lending and MSME business loans. Direct comparable on dual-vertical model (MFI + MSME), borrower segment overlap, and shared management alumni network.
• Asirvad Micro Finance: Private NBFC-MFI (Manappuram Group subsidiary) engaged in JLG lending to women. Comparable on MFI business model, regulatory classification, and small-ticket loan products.
• Bandhan Bank: Scheduled commercial bank that originated as a microfinance institution. Comparable on microfinance heritage and borrower base, although now operating as a universal bank with broader portfolio.
• Ujjivan Small Finance Bank: Small Finance Bank converted from NBFC-MFI heritage, serving underbanked and microfinance borrowers. Comparable on microfinance origin, borrower base, and Tier 3/4 market focus.
• Svatantra Microfin: Private NBFC-MFI focused on rural women entrepreneurs through JLG model. Direct comparable on MFI business model, regulatory classification, and rural women borrower segment.
• Aye Finance: NBFC providing secured and unsecured MSME loans to small businesses in Tier 3/4 markets. Directly comparable on the MSME vertical — Fusion's CFO Krishan Gopal previously served as Aye Finance CFO — including LAP, unsecured business loans, and similar product mix.

Broad incumbents

• Equitas Small Finance Bank: Small Finance Bank with microfinance origin serving small business and underserved borrowers. Comparable on microfinance heritage and missing-middle segment focus, though operating as a broader bank with deposits.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/delhiwebhosting
• YouTubeyoutube.com/channel/UCcPMJHqiPIlM03LJpa0BgoQ
• Facebookfacebook.com/FusionMicrofinance
• LinkedInlinkedin.com/company/fusion-microfinance-22

Revenue estimate

Valuation estimate

Number of profiles

Profiles20 records

Funding overview

Funding rounds10 records

Investors11 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Fusion Finance