MAGENTA FINANCE SERVICES PRIVATE LIMITED (MFSPL)

What MAGENTA FINANCE SERVICES PRIVATE LIMITED (MFSPL) does

Magenta Finance Services Private Limited (MFSPL) is a Delhi-based, RBI-licensed NBFC-MFI providing microfinance loans to women from rural and semi-urban households with annual income under INR 300,000. Incorporated in 2010 and licensed as an NBFC-MFI since November 2017, the company operates a Joint Liability Group (JLG) lending model in which borrowers are organized into groups of 5-8 members with collective repayment responsibility. Its product suite consists of three offerings: Abhimanini (income-generation loans for farming, livestock, handicrafts, and trading), WASH (sanitation/toilet construction loans), and Green Product (biodigester) loans. All loans range from INR 20,000 to 70,000 at a 25.50% annualized interest rate, with tenures of 12-24 months and monthly repayment cadences.

The company distributes its products through six physical branches across three North Indian states — Punjab (Sangrur, Ludhiana), Haryana (Kaithal, Karnal), and Uttar Pradesh (Saharanpur, Chutmalpur) — supported by field staff conducting household visits, center meetings, and group formation activities. Customer acquisition is community-led, relying on referrals through existing borrowers and outreach rather than digital marketing. The company's IT infrastructure integrates with all four major Indian credit bureaus for borrower assessment, and it bundles credit life and health insurance (via LIC, Pramerica, and other partners) into its loan offerings. Magenta is promoted by Isle of Man-based Nellcome Ltd. and Gulab Unity Trust, with capital additionally sourced from funders USHA, GROW, IBL, FWWB, and UC. The company is a member of the two RBI-recognized self-regulatory organizations, MFIN and Sa-Dhan. With 23 employees, the company is a small-scale microfinance operator whose stated long-term objective is to reach 500,000 financially excluded families.

Name

MAGENTA FINANCE SERVICES PRIVATE LIMITED (MFSPL)

Legal name

Magenta Finance Services Private Limited

Website

https://magentafinance.co.in

Company type

Private

Founded year

2010

Operating status

Operating

Headcount range

11–50 employees

Short description

Magenta Finance Services is an RBI-licensed NBFC-MFI extending small-ticket loans (INR 20,000-70,000) to rural and semi-urban women across Punjab, Haryana, and Uttar Pradesh via Joint Liability Groups, offering income-generation, sanitation, and green product loans.

Ownership category

akta.pro rank

Product category

Microfinance

NAICS

Nondepository Credit Intermediation (5222)

SIC

Personal Credit Institutions (6141), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Microenterprise Group Lending (Joint Liability) (FSAKAGAH)

akta.pro secondary industries

Microloans & Working Capital Loans (FSAKAGAA), Agricultural & Rural Microfinance (FSAKAGAG)

Keywords

• Microfinance lending
• Rural financial inclusion
• Women microfinance
• Joint liability loans
• NBFC microfinance

Headquarters

HQ city

New Delhi

HQ country

India

HQ region

Asia

Offices7 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Microfinance Loan Interest: Interest income from microfinance loans extended to women borrowers in rural and semi-urban areas. Loan products include Abhimanini (income generation), WASH loans for sanitation, and Green Product loans (biodigesters). Rate of interest is 25.50% per annum. Loans range from INR 20,000 to 70,000 with tenures of 12-24 months.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels3 records

Core offering

Magenta Finance Services Private Limited provides microfinance loans to women from rural and semi-urban households using the Joint Liability Group (JLG) model. Its core products are Abhimanini (income generation loans of INR 20,000–70,000), WASH (sanitation loans of INR 20,000–70,000), and Green Product / Biodigester loans (INR 25,000–50,000), all priced at 25.50% per annum over 12–24 month tenures and disbursed through 6 branches in Punjab, Haryana, and Uttar Pradesh.

Product overview

Magenta Finance Services Private Limited offers a portfolio of microfinance loan products designed for women in rural and semi-urban areas who lack access to formal banking. The core product suite consists of three loan offerings: (1) Abhimanini Microfinance Loan for income-generation activities such as farming, livestock, handicrafts, and trading; (2) WASH Microfinance Loan for sanitation improvements through toilet construction and repair; and (3) Green Product Loan (Biodigester) for eco-friendly biodigester installations. All products operate under the Joint Liability Group (JLG) model, providing loans up to INR 70,000 at 25.50% interest rates with tenures of 12-24 months, targeting financially excluded households with annual income under ₹300,000.

Differentiator

Problem solved

Functional benefit

Brands

• Abhimanini: Income Generation Microfinance Loan product - meaning 'Proud of Herself' - designed for low-income households to achieve financial independence.
• Sanitation Prosperity Blessings (WASH)
• Biodigester Loan

Products and services

• Abhimanini Microfinance Loan (Income Generation)

Named customers2 records

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Eleven partnerships are on record, tiered core and supporting.

• CRIF-HighmarkcoreTechnology or IntegrationCredit bureau services partner providing credit assessment data for borrower eligibility verification and risk management
• EQUIFAXcoreTechnology or IntegrationCredit bureau services partner for credit data and borrower risk assessment
• TRANSUNION-CIBILcoreTechnology or IntegrationCredit bureau services partner for credit history verification and loan eligibility assessment
• EXPERIANcoreTechnology or IntegrationCredit bureau services partner for credit data and borrower risk evaluation
• MFINcoreOthersMicrofinance Institutions Network - RBI-recognized Self-Regulatory Organization for MFIs. Magenta is a member following standard conduct in procedures and processes for ethical business practices.
• Sa-DhancoreOthersRBI-recognized Self-Regulatory Organization for MFIs. Magenta is a member promoting ethical microfinance practices and investor/borrower confidence.
• V. Nagarajan & Co.coreOthersStatutory auditor for Magenta Finance Services
• LIC (Life Insurance Corporation of India)coreOthersProvides Credit Life Insurance for borrowers, included as part of loan product offering
• PRAMERICAsupportingOthersInsurance partner for Magenta's microfinance products
• AI-QA HEALTH INSURANCEsupportingOthersHealth insurance partner for borrower coverage
• HOLISTIC INSURANCE SERVICESsupportingOthersInsurance services partner for microfinance loan products

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Arohan Financial Services: Kolkata-based NBFC-MFI using JLG methodology to serve low-income women in underserved Indian states. Directly comparable model and customer; recently scaled significantly with institutional capital, illustrating the trajectory Magenta could pursue.
• CreditAccess Grameen: One of India's largest NBFC-MFIs serving rural women through the JLG model. Directly comparable to Magenta in customer segment (rural women), product (microfinance income generation), and delivery (group lending), but at vastly greater scale across multiple states.
• Muthoot Microfin: NBFC-MFI arm of the Muthoot Group providing JLG-based microfinance loans to rural women. Comparable group lending methodology, customer demographic, and product offering, with the backing of a larger financial services group.
• Spandana Sphoorty Financial: Listed Indian NBFC-MFI using JLG methodology to lend to low-income women in rural and semi-urban areas. Comparable customer base, JLG group structure, and unsecured microfinance product mix; substantially larger AUM and geographic footprint.
• Fusion Microfinance: Indian NBFC-MFI focused on women borrowers in rural and semi-urban areas using JLG groups. Directly comparable product offering, customer segment, and lending methodology; operates across more states than Magenta.
• Asirvad Microfinance: Chennai-based NBFC-MFI serving low-income women via JLG lending. Comparable group-based microfinance model and target customer profile; subsidiary of Manappuram Finance, giving it stronger funding access than independent NBFC-MFIs like Magenta.
• Satin Creditcare Network: Listed Indian NBFC-MFI offering JLG-based microfinance to underserved women in rural India. Directly comparable lending methodology, customer segment, and unsecured microcredit product; larger and more diversified geographically.

Broad incumbents

• Bandhan Bank: Universal bank with one of India's largest microfinance portfolios through its EEB segment. Comparable end customer (rural women borrowers) and JLG methodology, but with full banking services and significantly larger balance sheet, lower cost of funds.
• SBI Microfinance (SVIN): Microfinance arm of State Bank of India, providing JLG loans to rural women borrowers. Comparable customer segment and product but backed by India's largest bank with materially lower cost of funds and broader distribution.

Emerging players

• DMI Finance: Alternative NBFC with a microfinance and small business lending book targeting underbanked segments. Less of a pure JLG match but operates in adjacent fintech-enabled credit inclusion space relevant to Magenta's modernization trajectory.

Market position

Strengths1 record

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/magenta-finance-services-private-limited

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds

Investors

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 MAGENTA FINANCE SERVICES PRIVATE LIMITED (MFSPL)