Muthoot Microfin on Monday said it has secured $50 million (about Rs 375 crore) funding from Greater Pacific Capital to fuel the microlender's growth.

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The company, a part of the Kerala-based Muthoot Pappachan Group, is the fifth largest microlender in the country and claimed that this is the largest funding for any microfinance entity since 2019. Currently, it serves 19 lakh women entrepreneurs across 16 states and 257 districts, and the capital will help it become one of the largest microfinancers in the country in the next two-three years, the statement said.

"With this round of funding, we will look to double our assets under management from Rs 5,000 crore ($670 million) currently to Rs 10,000 crore ($1.3 billion) over the next two-three years," its CEO Sadaf Sayeed said. Sayeed said they plan to open 500 branches, and the funding will take the overall capital adequacy to over 30 percent, and empower up to 20 lakh more households.

"Financial inclusion is one of India's biggest development challenges, and critical to achieving United Nations' Sustainable Development Goals. The ongoing coronavirus pandemic has led to significant financial hardships in India and an increase in the number of households that need to be lifted into prosperity," Greater Pacific Capital founder and CEO Ketan Patel said.