The Kolkata headquartered microfinance company (MFI), Arohan Financial Services has been acquired by Intellecash Microfinance Network Ltd, an arm of Intellecap Group of companies. According to Shubhankar Sengupta, the CEO of Arohan, the latter has taken majority stake in Arohan with an investment of about Rs. 16 crore.
It is reported that Arohan was set up in the year 2006 and has a considerable market share consisting of more than one lakh customers and has disbursed loans worth Rs. 40 crore.
Mr. Sengupta further said that the recent directives by Reserve Bank of India have given a proper structure and guidance to the microfinance industry. The regulations such as increased capital requirements, margin limits and increased provisioning have made it necessary for the MFIs to operate on a large scale.
The company (Arohan) also wants to expand its presence in more Indian states particularly the low income states like Assam, West Bengal, and Bihar etc. It wants to increase its assets portfolio to the tune of Rs. 100 crore by the end of the current financial year.