C4D Partners makes its exit in Ananya Finance

Published on - 16 Apr 2024

Gender-smart Investor C4D Partners announced its exit from portfolio company Ananya Finance with significant returns. Ananya Finance is an NBFC that facilitates formal credit access to the underserved population of India. This marks the investor’s third exit in FY24 and the fifth exit out of a total of 13 equity investments in its Fund-1 India portfolio within its initial five years of operation.

Ananya Finance, the portfolio company in focus, has secured a significant amount in the current funding round from its existing investor, Gojo & Company, Inc. (“Gojo”), a Japan-based holding company enabling financial inclusion through investments across Asia. This funding round involved both primary and secondary transactions, indicating robust investor confidence in Ananya Finance’s business model and potential for growth. 

C4D Partners has invested INR 26.4Cr (USD 3.8Mn) in Ananya Finance across multiple rounds. Since the investment, Ananya’s AUM has grown around tenfold. The funding enabled the NBFC to scale its operations beyond FPO loans and wholesale lending to underserved communities. Ananya has also expanded its retail operations to serve its customers directly through the acquisition of an MFI. 

Arvind Agarwal, Founder and CEO of C4D Partners, said, “At C4D Partners, we focus on striking a balance between impact and financial returns through our investments. We are achieving this by investing in early-stage impact-focused businesses, but underwriting, portfolio construction, and management are with a PE lens. We invest in a limited number of companies to offer them our complete attention and support, with the objective of turning them profitable within the first year of operation after our investment.”

 “Ananya’s growth story is an evident demonstration of our investment thesis, as the business has grown multiple-fold while empowering underserved communities across the country. Having worked closely with the NBFC over the years, we are proud of Ananya’s journey of impact and growth,” he added.

 Arvind emphasizes that one of the primary reasons for C4D’s distinct investment approach, which combines the VC and PE strategies, was also to counter the problem of exits in India. C4D’s hybrid approach minimizes the portfolio’s mortality rate and enables the fund to exit through management buyouts from companies that have not grown significantly but have healthy profits.

Aligning with C4D’s investment goal to enable gender equity, Ananya also extends micro-loans to women borrowers, empowering them to start and sustain their economic enterprises. Currently, 98% of borrowers of Ananya are women. The company ensures that its partners also share this commitment to gender equality and women empowerment. Furthering this purpose, Ananya acquired a majority stake in Prayas Financial Services, an NBFC-MFI providing loans to women in underserved households and informal micro-enterprises.

Gaurav Gupta, Managing Director at Ananya Finance, said, “We are excited to grow our business further with the new investment from Gojo. The funds from this round will support our efforts toward amplifying Ananya’s market reach. While C4D Partners has been an involved investor and supported our business beyond just capital, they’ll be making a profitable exit with this round. We’re happy to be associated with and supported by our investors. The year has begun on an optimistic note, and we’re confident of continuing this streak with more business milestones.”

Commenting on the development, Sanjay Gandhi from Gojo said, “We are proud to have supported Ananya since 2018, aligning with Gojo’s mission to extend financial inclusion across the globe. In our journey at Ananya, C4D has been a supportive and responsible co-investor, and for that, I want to express my gratitude to them. Also, with the recent investment made into Ananya, we are certain Ananya will continue to expand its reach and provide responsible financial products to more clients across India.”

 About Ananya Finance
Ananya Finance is a socially motivated, Non-Banking Finance Company (NBFC) that facilitates formal credit access to the underserved population of India. It is committed to reaching the sections of the population that remain excluded from the credit, focusing on reaching out to underserved women. At present, Ananya offers its customers Micro Enterprise Loans, and through its subsidiary Prayas Finance, it caters to the microfinance borrower segment.

 About C4D Partners
Capital 4 Development (C4D) Partners is a gender-smart investment fund manager incorporated to invest across sectors in growing start-ups. C4D operates in the venture capital space, focusing on climate action, livelihood for underserved communities, and an intersectional approach toward gender. To promote inclusive economic growth and contribute to the SDGs, C4D Partners invests in responsible businesses that work towards the planet, people, and profit combined with market returns. C4D’s investment strategy has been thoughtfully designed to invest with a gender lens, and C4D is committed to investing at least 30% of its corpus in women SMEs. In addition to providing capital, C4D Partners also provides Technical Assistance (TA) through its Portfolio Support Program (PSP), considered non-investment support to portfolio companies, and acts as a catalyst for better financial sustainability of the portfolio and potentially reduces the mortality rate.

back to News Share