Annapurna: supporting employment and financial inclusion in India

Annapurna was established in 2007 in Eastern Indian state, Odisha by the NGO People's Forum. It is the leading microfinance institution in the State of Odisha and the fifth largest microfinance institution in India by the size of its loan portfolio. It has maintained a very strong rural base and the vast majority of the population it serves are women in the eighteen states in central and eastern India where there is a low level of financial inclusion. Annapurna was certified Smart Campaign in 2016 and also received the A+ rating in March 2019 under the social rating conducted by MicroFinanza Rating. The MFI, which is specialized in group loans to women, benefits from in-depth knowledge of its market segment and has a very strong capacity to innovate in order to carry out its social mission. As on March 31, 2022, the Company has 984 branches and employing 8606 employees serving 2.3M borrowers.

The project involves the allocation of a USD 15m equity to the Indian microfinance institution (MFI) Annapurna to support the development of its loan portfolio.

Over the next five years, the project is expected to:

• Sustain 190 000 jobs, including more than 600 jobs to be created within Annapurna;
• Contribute to improving access to financial services for close to 201,000 entrepreneurs;
• Support gender equality and entrepreneurship opportunities for women. The institution has a Gender Policy and a defined Gender Action Plan that covers different topics: recruitment measures, mentoring program, promotion of young achievers, maternity leave and support facility, training on gender sensitivity for all employees, among others. On this basis, Annapurna equity project is 100% qualified for the 2X Challenge. 

The project will thus contribute to meeting SDG 1 (No poverty), SDG 5 (Gender Equality) and SDG 8 (Decent work and economic growth).