Greater Pacific Capital, based in the UK, has invested $10 million in Muthoot Microfin Limited (MML), a microfinance subsidiary of Muthoot Pappachan Group (GPC). The private equity firm's stake of the micro finance company has increased from 14.4 per cent to 16.6 per cent.

Prior to this investment, GPC had invested $50 million in the Mumbai-based microfinance institution (MFI) in December 2021.

Before this round, Chicago-based Creation Investments held a 9.8 per cent stake in the company, and the rest of the stake was owned by Trivandrum-based listed Muthoot Fincorp and the Muthoot Pappachan Group family members.

Muthoot Microfin said in a statement that it plans to allocate this investment to its growth, expanding its operations to new geographies and further extending its services to rural households.

Furthermore, the chairman of the Muthoot Pappachan Group, Thomas John, mentioned, "GPC’s second round of capital investment is a vote of confidence in the resilient performance of Muthoot Microfin and its growth opportunities."

The company offers microloans to more than 2.3 million active borrowers and claims to be focused on women entrepreneurs, primarily in the rural regions of India.

With an asset under management (AUM) of Rs 7,300 crore, the company has a network of 1,000 branches across 18 states and union territories across the country. In FY22, the company’s revenue was up by 21.6 per cent on a yearly basis. Further, the company had an operational revenue of Rs 8,32.5 crore. Its profit grew more than six times to Rs 47.4 crore during the same period.

Thomas Muthoot, managing director of MML, said, "Post COVID, Muthoot Microfin has seen a rapid growth in credit offtake. The portfolio originated post the second COVID wave (after June 2021), accounting for 80% of the book as of September, is behaving very well with just 0.16 per cent non-performing assets. "