Fusion Finance Limited was originally incorporated as 'Ambience Fincap Private Limited' on September 5, 1994, at New Delhi, India, as a Private Limited Company under the Companies Act 1956. Subsequently, the name of the Company changed to 'Fusion Micro Finance Private Limited' before becoming Fusion Finance Limited. The company received a certificate of registration from the RBI as a non-banking financial company (NBFC) in 2010 and was registered as a public limited company in 2021.
Fusion is a systemically important non-deposit NBFC dedicated to empowering underserved women in India. It provides Joint Liability Group (JLG) loans to female members in groups of 5-7, backed by mutual guarantees, thereby providing them access to greater economic opportunities through microfinance services.
Fusion Micro Finance operates with a core focus on JLG loans. Loan tenures typically range from 17 to 25 months, with repayments scheduled every 14 or 28 days, at interest rates of 19.15%-23.40% (reducing balance). The company has expanded its offerings to include MSME lending and provides loans for productivity-enhancing items like mobile phones and bicycles, leveraging its extensive distribution channel.
As of recent data, Fusion Micro Finance serves 2.90 million active borrowers through 966 branches and 9,262 permanent employees across 377 districts in 19 states in India. The company offers income generation and cross-sell loans to its customers, as well as MSME loans, with proceeds used to fund businesses in sectors such as agriculture, manufacturing, retail, and services.
Fusion Micro Finance has demonstrated significant growth in the Indian microfinance sector, recording the fourth fastest growth in gross loan portfolio CAGR (53.89%) among the 10 largest NBFC-MFIs in India. It also stands out as one of the youngest companies in the sector to achieve such scale. As of recent data, the company commands a market capitalization of ₹2,868 Crore.
Based on recent financial data (Q1 FY2025):
• Revenue: ₹475.99 Crore (as of March 2025)
• Net Profit: ₹-164.56 Crore (as of March 2025)
• Net Profit Decline: -224.02% year-over-year
Fusion Finance Ltd reported a net loss of ₹165 crore for Q4 FY25 (equivalent to Q1 FY25 in the provided data), primarily attributed to increased provisions for bad loans. The net interest margin fell to 8.57%, and net interest income decreased by 22% year-on-year, reflecting reduced business volume.
The Fusion Finance Ltd's 52-week high share price is ₹490.71, and the 52-week low share price is ₹124.90. Promoter holding in Fusion Finance Ltd has seen a decline, moving from 57.71% as of September 2024 to 55.21% as of May 2025.
Fusion Micro Finance successfully completed its public issue in November 2022, raising ₹1,103.99 crores, comprising a fresh issue of ₹600 crores and an offer for sale of ₹503.99 crores. The company was listed on November 15, 2022.
Recent corporate actions include the approval of allotment of 6,10,58,392 partly paid-up equity shares at ₹131 each as part of its rights issue in May 2025. The company has also appointed a Chief Credit Officer, and an interim CFO has been appointed from June 26, 2025, following the resignation of the previous CFO.
The company faces several challenges, including a low return on equity of -4.99% over the last 3 years and a low interest coverage ratio, indicative of profitability pressures and debt servicing challenges. However, the company has shown efforts to reduce debt, which indicates ongoing financial restructuring initiatives.
Fusion Finance Limited operates in a challenging but essential sector, serving the underbanked population of India through its microfinance services. While the company faces current profitability challenges, its extensive network and focus on women's economic empowerment position it as a significant player in the financial inclusion space, offering potential for future growth as it navigates market dynamics and internal restructuring.
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