Protium Finance Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Protium Finance Ltd (PFL) is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI) that fuels the ambitions of Indian micro-, small-, and medium-sized enterprises (MSMEs) by providing them with business loans. The company's products include loans against property, business loans, machinery and equipment, and educational institutions. Their mission is to channel the funding towards underserved entrepreneurs across India who are not part of the formal financial sector. PFL has a pan-India presence, operating through a network of 104 branches across 17 states (out of 27), employing 2,800 people, and has reached 835k+ customers.
What is our funding objective?
The proposed transaction is a 5-year, USD 40 mln equivalent in INR, senior, secured, listed Non-Convertible Debentures (NCD), which shall be used to further grow their loan portfolio.
Why do we want to fund this investment?
In India, MSMEs face an enormous shortage of credit from formal financial institutions such as banks and NBFCs; less than 15% of demand is currently being met. PFL’s business is 90% focused on MSMEs, of which 39% are based in (semi-)rural areas. Through this investment, FMO will create impact by the company's operations reaching underserved (rural) SMEs, on-lending to female and youth-owned and/or led SMEs, providing microloans, and contributing to reducing the financing gap. Consequently, the proposed transaction is fully eligible for the FMO Reducing Inequalities label.
What is the Environmental and Social categorization rationale?
Protium is an E&S category C investment, as they mostly provide loans to small-scale MSMEs and do not have any exposure to transactions that trigger the IFC Performance Standards (PSs).
- Website customer/investment
- https://protium.co.in/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 6/18/2025
- Deadline for feedback
- 7/18/2025
- Total FMO financing
- USD 40.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C