Devesh Sachdev
MD & CEO
These enterprises have been dependent on informal channels of finance like local money lenders, who charge non-transparent exorbitant rates and with various exploitations attached in case of delayed/non-payment. Microfinance model of providing simple, transparent, collateral free financial products at the door step of the clients along with financial literacy has brought close to 6.5 Cr unique clients in the formal financial sector. By focusing on women, it has achieved something that no other public or private initiative has been able to do- bringing women into the formal financial arena. Reports suggest that India economy would benefit significantly from better inclusion".
Based out of Gurugram, with a registered office at New Delhi, Fusion Microfinance has zealously followed the path of delivering financial services to women entrepreneurs both small and medium - encouraging them with the requisite funds support to step out of their traditional comfort zones and contribute significantly to their household in-comes, and to create a larger impetus in the overall economy by generating further employment, thereby igniting a chain reaction for livelihood improvement on the way.
Today, Fusion is predominantly a Rural focused organization serving 2.1 million customers in 18 states across 700+ branches having cumulatively disbursed Rs 13700 Cr since 2010.
The Road to People Focused Customer Centric
Fusion is a `People Focused Customer Centric' organization. This essentially encompasses not only the value system adhered at Fusion, but also acts as a guiding light for the company's business model. Fusion leverages the Grameen model of group lending which fundamentally is based on the `joint liability group' concept. This approach has been successfully institutionalized in the annals of Financial Services in India as the best model to leverage the collective force of small women entrepreneurs grouping together towards a common goal of livelihood upliftment via household income generation. Several data attest that women, especially in rural India demonstrate better prudence and credit discipline in matters of managing growth capital for their small initiatives supporting household income.
To make a significant contribution towards the mission of Financial Inclusion in India, it is imperative for a firm like Fusion to deliver its services at the doorstep of its customers in a transparent, efficient and cost effective manner. In its endeavor to achieve this, Fusion now has presence in 18 states across 700 plus branches which currently serve 2.1 million customers in 314 districts. Over the years, Fusion has built a unique `Touch and Tech' distribution model focusing on the targeted customer segment.
In this model, the Fusion team spread across branches, directly manage the entire life cycle from `sourcing to collections to customer service to new fund requirement' ably supported by a robust in-house developed LOS which since 2017 is also calibrated within Fusion's Mobile application called M-Shakti. Today, Fusion takes pride in its seamless tech enabled wing to wing pro-cess architecture which delivers online customer sourcing, real time decisioning & credit appraisal, quick turnaround, cashless disbursement, cashless collections and a multi-level customer service & grievance management system.
Today, Fusion is the youngest to make it to the TOP 10 NBFC MFI list. The firm has also been amongst the Top 3 fastest growing companies in the last 3 years and achieved the GPTW certification in its debut year. Speaking of growth, with an AUM of Rs 4637 Cr as of March 2021, up from Rs 770 Cr in March 2017, Fusion Microfinance has demonstrated its ability to build and manage large portfolios across an expansive distribution network registering a CAGR of 54%.
Core Building Blocks of Success
Devesh attributes Fusion's success to some core building blocks that have stood the test of time and helped the firm stay the course over the last 10 years. As Devesh enlists the following building blocks:
· Fusion's mission has been the guiding light that channels the company's vision.
· Being Responsible, Being Transparent
· Treating Corporate Governance as an Asset
· Customer Centric People Focused· Execution capability as the differentiator, Tech as the enabler, and `Touch and Tech' as the core of its delivery platform
The People Factor
A fair share of the credit also goes to the passionate and skilled workforce. Over the years, Fusion has focused greatly on hiring, growing and building a talent power-house. The firm believes `people' are an inevitable success factor in the journey of any micro finance company in India. Credit for this squarely rests with Devesh who not only has a knack for identifying talent when he saw one but also for having complete trust in people's ability to build a successful retail franchise in the financial inclusion space.
Fusion's senior management team comprises experts and professionals heading various functions with an average of 15 years of leadership experience in their respective fields. Several key members of the senior management team have been with Fusion for over 7 years with their solid domain expertise of retail financing including Microfinance and other retail lending business models. This has helped Fusion amalgamate the conventions of a Micro Finance model with the characteristics of a new age retail model that targets to build and leverage scale, enhance operational efficiency, ensure better customer satisfaction and maintain robust checks and balances in adherence to laid down guidelines.
Another testament of Fusion's focus on growing in house talent is that almost all our states are headed by people who started their careers with Fusion and have grown through the ranks.
A More Tech Enabled Future
Having achieved such tremendous success in delivering financial inclusion via streamlined methodologies, Fusion is now looking into embracing the `new world order' and focus on digitalization. The firm is set to welcome a plethora of new-age technologies in its processes. As part of this vision, Fusion is looking forward to include analytics to assist in its decision making and drive growth. Fusion will further push customer centricity in every strategy prepared. Finally, and most importantly, Fusion, as a harbinger of financial inclusivity in India, intends to become a `Touch and tech' company of choice for rural India.
Some Smiles Spread, Some Lives Uplifted
I run a sweet shop with my family in a small town of West Bengal. My husband and son used to run the shop. With minimal income, we could barely meet the expenses of the shop and household. There was a point when we thought of shutting down the shop. The shop needed an investment. I wanted to help but I had no place to get the fund from. Someone told me about Fusion Microfinance. I approached them and took a loan to expand the business which stabilized my income. Gradually, the business gained its pace after further investment with subsequent loan taken from Fusion and started making profit. My involvement in the business grew and I started managing it single handedly. I am thankful to Fusion to help me save my business and realize my potential to become an entrepreneur.
Archana Modak, West Bengal
I used to work at a garment shop with my husband. We were salaried employees, but the earning was not enough for a family of four people. We have two daughters who are currently studying. But due to our low income, it was becoming difficult to continue their education. Sometimes, when we fell sick we couldn't even afford to see a doctor. The financial crisis led to tensions at home due to which we were always stressed out. When we came to know about Fusion's financial services, we decided to open a shop of our own. There were not many garment shops in the locality so we used our first loan to open one. Gradually, it gained more prominence and since there was no lack of customers we started earning well. The improved financial status helped us overcome many problems, most importantly our children's education. Both daughters are doing well in their studies. The eldest one is pursuing nursing and will be financially independent soon. I cannot forget how Fusion helped in my darkest times with its constant support.
Poongodi, Pondicherry
"Our goal has always been to be a `responsible lender of choice' for the underserved and unserved populace of our country and with that in mind we have zealously focused on Rural India and today cover almost 68000 villages in 314 districts, having been in appx 22000 villages 5 years ago in 2017", says Devesh.
Core Building Blocks of Success
Devesh attributes Fusion's success to some core building blocks that have stood the test of time and helped the firm stay the course over the last 10 years. As Devesh enlists the following building blocks:
· Fusion's mission has been the guiding light that channels the company's vision.
· Being Responsible, Being Transparent
· Treating Corporate Governance as an Asset
· Customer Centric People Focused· Execution capability as the differentiator, Tech as the enabler, and `Touch and Tech' as the core of its delivery platform
The People Factor
A fair share of the credit also goes to the passionate and skilled workforce. Over the years, Fusion has focused greatly on hiring, growing and building a talent power-house. The firm believes `people' are an inevitable success factor in the journey of any micro finance company in India. Credit for this squarely rests with Devesh who not only has a knack for identifying talent when he saw one but also for having complete trust in people's ability to build a successful retail franchise in the financial inclusion space.
Microfinance sector is very important for an economy like India's, where more than 80% of people work in the informal sector. These enterprises have been dependent on informal channels of finance like local moneylenders, who charge non -transparent exorbitant rates and with various exploitations attached in case of delayed/non-payment.
Fusion's senior management team comprises experts and professionals heading various functions with an average of 15 years of leadership experience in their respective fields. Several key members of the senior management team have been with Fusion for over 7 years with their solid domain expertise of retail financing including Microfinance and other retail lending business models. This has helped Fusion amalgamate the conventions of a Micro Finance model with the characteristics of a new age retail model that targets to build and leverage scale, enhance operational efficiency, ensure better customer satisfaction and maintain robust checks and balances in adherence to laid down guidelines.
Another testament of Fusion's focus on growing in house talent is that almost all our states are headed by people who started their careers with Fusion and have grown through the ranks.
A More Tech Enabled Future
Having achieved such tremendous success in delivering financial inclusion via streamlined methodologies, Fusion is now looking into embracing the `new world order' and focus on digitalization. The firm is set to welcome a plethora of new-age technologies in its processes. As part of this vision, Fusion is looking forward to include analytics to assist in its decision making and drive growth. Fusion will further push customer centricity in every strategy prepared. Finally, and most importantly, Fusion, as a harbinger of financial inclusivity in India, intends to become a `Touch and tech' company of choice for rural India.
Some Smiles Spread, Some Lives Uplifted
I run a sweet shop with my family in a small town of West Bengal. My husband and son used to run the shop. With minimal income, we could barely meet the expenses of the shop and household. There was a point when we thought of shutting down the shop. The shop needed an investment. I wanted to help but I had no place to get the fund from. Someone told me about Fusion Microfinance. I approached them and took a loan to expand the business which stabilized my income. Gradually, the business gained its pace after further investment with subsequent loan taken from Fusion and started making profit. My involvement in the business grew and I started managing it single handedly. I am thankful to Fusion to help me save my business and realize my potential to become an entrepreneur.
Archana Modak, West Bengal
I used to work at a garment shop with my husband. We were salaried employees, but the earning was not enough for a family of four people. We have two daughters who are currently studying. But due to our low income, it was becoming difficult to continue their education. Sometimes, when we fell sick we couldn't even afford to see a doctor. The financial crisis led to tensions at home due to which we were always stressed out. When we came to know about Fusion's financial services, we decided to open a shop of our own. There were not many garment shops in the locality so we used our first loan to open one. Gradually, it gained more prominence and since there was no lack of customers we started earning well. The improved financial status helped us overcome many problems, most importantly our children's education. Both daughters are doing well in their studies. The eldest one is pursuing nursing and will be financially independent soon. I cannot forget how Fusion helped in my darkest times with its constant support.
Poongodi, Pondicherry
"Our goal has always been to be a `responsible lender of choice' for the underserved and unserved populace of our country and with that in mind we have zealously focused on Rural India and today cover almost 68000 villages in 314 districts, having been in appx 22000 villages 5 years ago in 2017", says Devesh.
