Siguler Guff & Company acquires ownership stake in Spandana Sphoorty Financial with Rs 240cr investment

Siguler Guff & Company, LP, a global multi-strategy private markets investment firm with over $16 billion in assets under management, has invested INR 240 crores for an approximate 3.5% ownership stake in Spandana Sphoorty Financial Limited (NSE: SPANDANA). Spandana Sphoorty is a leading rural-focused microfinance non-banking financial corporation (NBFC-MFI) based in Hyderabad. This strategic investment reinforces Siguler Guff‘s commitment to high-growth opportunities in India‘s private and public markets.

Key Investment Details:

1. Investment Value: Siguler Guff’s investment of INR 240 crores secures a 3.5% stake in Spandana Sphoorty, validating the NBFC-MFI’s growth trajectory.

2. Market Presence: Spandana Sphoorty has a pan-India presence and primarily provides income generation loans to women under the joint liability group model. By March 2024, the company reported an asset under management (AUM) of approximately INR 11,970 crores.

Siguler Guff’s INR 240 crore investment in Spandana Sphoorty highlights their faith in India’s microfinance sector.

Endorsements from Siguler Guff’s Leadership:

– Aviral Jain, Managing Director & Head of India: “Spandana stands overlooked among India’s publicly traded lending institutions, with an incredibly strong management team. Our investment confirms our belief in the Company’s untapped growth potential.”

– Shaun Khubchandani, Partner & Co-Head of Emerging Markets: “Spandana’s technology-enabled disbursement process and focus on weekly collections reinforce confidence in their sustainable growth. Management’s Vision 2025 execution aligns with our emerging markets portfolio.”

Contribution to India’s Growth:

Shaun Khubchandani further expressed the firm’s commitment to investing in companies that significantly contribute to India’s economic narrative. Siguler Guff recognizes Spandana Sphoorty’s strong potential to provide financial empowerment through innovative microfinance services.

Firm’s Broader Investment Portfolio:

Siguler Guff maintains a strong presence in India’s financial sector, with investments in City Union Bank, Manappuram Finance, and Repco Home Finance. Other private investments include Baazar Kolkata, Luker, Sterling Hospitals, and Verse Innovation.

This strategic investment underlines Siguler Guff’s continued belief in Spandana Sphoorty Financial’s capacity to deliver sustainable growth and contribute to India’s economic empowerment.