Purple Finance plans Saksham Gram Credit buyout to expand rural footprint

Non-banking financial firm Purple Finance has secured board approval to acquire Saksham Gram Credit as a wholly-owned subsidiary via a share swap, alongside raising INR 1,080 million in equity to drive expansion across rural and semi-urban markets.

Indian non-banking financial firm Purple Finance has secured in-principle board approval to acquire Saksham Gram Credit Private Ltd through a share-swap transaction, converting it into a wholly-owned subsidiary subject to regulatory approvals and due diligence. Alongside the acquisition proposal, the company secured equity funding commitments totaling INR 1,080 million to support its capital base and facilitate geographical expansion into rural and semi-urban markets.

Purple Finance operates as a non-banking financial company focused on retail lending and MSME financing. Saksham Gram Credit, established in December 2019, functions as a prominent business correspondent for banking institutions and financial entities. It maintains an operational network of 147 branches and over 31,000 microfinance centres across 74 districts in 10 states, serving roughly 163,000 clients across semi-urban and rural regions.

This strategic transaction dramatically shifts Purple Finance’s market orientation toward underserved rural customer segments, particularly across southern India. Following the integration, the combined organization's assets under management are projected to reach approximately INR 8,500 million, instantly accelerating scale and distribution capability across Tier III and Tier IV locations.

The acquisition aligns with broader consolidation trends in India's microfinance and priority-sector lending ecosystem, where financial institutions leverage established agent networks to minimize customer acquisition costs. By broadening its presence in rural credit markets, Purple Finance advances its longer-term strategic ambitions toward establishing a small finance bank platform.