Fusion Finance
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.
- Company typePublic
- Founded2010
- HeadquartersNew Delhi, India
- Headcount1,001–5,000
- GTM typeB2C
- OfferingServices
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.
Fusion Finance firmographics
Firmographics- 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
Fusion Finance industry classification
Industry- 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
Where Fusion Finance is headquartered
LocationHeadquarters
- HQ city
- New Delhi
- HQ country
- India
- HQ region
- Asia
Offices3 records
Markets served
Fusion Finance business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- 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.
- 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.
- 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
| Model | Billing | Price |
|---|---|---|
| Subscription | Monthly | Secured Business Loans - Loan Against Property |
| Subscription | Monthly | Unsecured Business Loans |
| Subscription | Monthly | Solar Loans |
| Subscription | Monthly | Secured Business Loans (Backed by Property) |
| Other | Monthly | MFI Insurance - Group Joint Credit Life |
| Other | Monthly | MSME Insurance - Group Single Credit Life |
Go-to-market motion3 records
Distribution channels5 records
Marketing channels7 records
Fusion Finance product offering
Product offeringCore 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
Companies that use Fusion Finance
Customer profileNamed customers4 records
Segments3 records
Ideal customer profiles3 records
Fusion Finance technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature4 records
Fusion Finance partnerships and signals
Strategic signalPartnerships
Eleven partnerships are on record, tiered minor and core.
- ICICI Prudential Life InsuranceminorLife insurance partner providing coverage to Fusion Finance customers under corporate agency arrangement.
- ICICI Lombard General InsuranceminorGeneral insurance partner for Fusion Finance's insurance distribution offerings.
- HDFC Life InsuranceminorLife insurance partner providing coverage through Fusion Finance's corporate agency.
- Bajaj Allianz Life InsuranceminorLife insurance partner for Fusion Finance's cross-sell insurance products.
- Kotak Mahindra Life InsuranceminorLife insurance partner in Fusion Finance's insurance distribution network.
- Magma HDI General InsuranceminorGeneral insurance partner providing coverage through Fusion Finance's corporate agency.
- Zurich Kotak General InsuranceminorGeneral insurance partner for Fusion Finance's insurance offerings.
- Aditya Birla Health InsuranceminorHealth insurance partner for Fusion Finance's insurance distribution.
- ACKO General InsuranceminorGeneral insurance partner in Fusion Finance's insurance distribution network.
- MFIN (Microfinance Institutions Network)coreIndustry 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)minorPartnership with 53 NGOs supporting CSR initiatives across education, health, livelihood, and environmental sustainability programs.
Scale indicators16 records
Recent moves8 records
Expansion highlights6 records
Fusion Finance competitors and assessment
Company assessmentDirect 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
Fusion Finance social profiles
Digital presenceFusion Finance financial estimates
Financial estimateRevenue estimate
Valuation estimate
Fusion Finance leadership team
Management profileNumber of profiles
Profiles20 records
Fusion Finance funding detail
Funding detailFunding overview
Funding rounds10 records
Investors11 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Fusion Finance M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Fusion Finance
What does Fusion Finance do?
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.
Is Fusion Finance a public or private company?
Fusion Finance is a public company. It is classified as public and is currently operating.
When was Fusion Finance founded?
Fusion Finance was founded in 2010. It employs 1,001 to 5,000 people.
Where is Fusion Finance based?
Fusion Finance is headquartered in New Delhi, India, in the Asia region.
How does Fusion Finance make money?
Three revenue lines are on record. Microfinance Lending is the primary driver. The others are MSME Lending and insurance Distribution.
Who are Fusion Finance's main competitors?
Direct peers on record are CreditAccess Grameen, Spandana Sphoorty Financial, Muthoot Microfin, Satin Creditcare Network, Asirvad Micro Finance, Bandhan Bank, Ujjivan Small Finance Bank, Svatantra Microfin and Aye Finance. Equitas Small Finance Bank is listed as a broad incumbent.
Does Fusion Finance have an API?
No public API is recorded for Fusion Finance.
What industry is Fusion Finance in?
Fusion Finance's product category is Microfinance / NBFC Lending. Its primary akta.pro industry code is FSAKAGAH, Microenterprise Group Lending (Joint Liability), with a secondary code of BPAGABAM, Microfinance, Financial Inclusion & Inclusive Markets. Its NAICS code is 52239 and its SIC code is 6153.