New Delhi, Jan. 14 -- Piramal Finance has raised $350 million (Rs 3,156 crore) in debt capital from the International Finance Corporation (IFC) and the Asian Development Bank (ADB), marking its first raise through the development finance institution (DFI) route.

The non-bank lender has raised $200 million from IFC and $150 million from ADB under its sustainable finance framework. The five-year facilities will be drawn in tranches between January and March 2026, in line with regulatory norms. IFC is the private sector investment arm of the World Bank Group.

The capital will be deployed to expand access to affordable housing finance, MSME credit, and lending to women borrowers and entrepreneurs, especially in semi-urban and rural areas across tier II and III markets.

"Our business model is centered around the budget customer of Bharat, and supports MSMEs, small women entrepreneurs and homeowners in Bharat markets," said Jairam Sridharan, managing director and chief executive officer of Piramal Finance, in a note. "This aligns with the developmental goals of our multilateral partners ADB and IFC. It also helps the continued diversification of the liability structure of Piramal Finance," he added.

Piramal Finance is also in advanced discussions to raise an additional $150 million from select DFIs, which would take its total multilateral fundraising pipeline to $500 million.

As part of its diversification strategy in FY25, the company raised $815 million through external commercial borrowings (ECBs), including $450 million via US dollar bond issuances and $365 million through syndicated bank loans. ECBs currently account for around 9% of Piramal Finance's total borrowings.

Piramal Finance is part of the Ajay Piramal Group, whose other businesses include Piramal Pharma and Piramal Realty. The lender offers products like housing loans, loans against property, used car loans, business loans, salaried personal loans, and digital loans.

The company's assets under management stood at Rs 91,000 crore as of September 30, while total borrowings were Rs 71,609 crore.

Published by HT Digital Content Services with permission from VC Circle.