What is Sales and Marketing Strategy of Fusion Microfinance Company?

Fusion Microfinance operates a vast network of physical branches, acting as the bedrock of its sales and customer acquisition efforts. As of Q1 FY25, the company managed 1,398 branches spread across 22 states and 3 Union Territories. This expansive reach allows for direct engagement with women in rural and semi-urban areas, facilitating the joint-liability group lending model and supporting client income-generating activities. The addition of 101 new branches in Q1 FY25 alone underscores the commitment to this high-touch sales approach.

The company is strategically evolving its sales channels through a 'Touch & Tech' model, blending its physical presence with digital advancements. This includes technology-enabled verticals, such as its MSME business, which had an Assets Under Management (AUM) of ₹673 crore as of March 2025, supported by a direct acquisition team. This dual approach aims to enhance efficiency and broaden service delivery.

Fusion Microfinance plans to increase its overall network by approximately 20% in the current year, with a target of opening 300 additional branches. This expansion strategy is designed to deepen market penetration and improve loan outreach, further solidifying its position in rural finance sales tactics.

The company's AUM grew by 23.5% year-on-year to ₹11,476 crore by March-end 2024, with active borrowers reaching approximately 39.5 lakhs in Q1 FY25. Direct assignments amounted to ₹479.49 crore in Q1 FY25. To manage asset quality amidst sector challenges, the company has tightened credit criteria and, in Q2 FY25, calibrated disbursements and paused operations in 104 branches to improve collection efficiency.

The company establishes itself as a credible microfinance provider, emphasizing transparency and strong governance. Its primary mission is to empower women entrepreneurs in rural and semi-urban India through accessible microfinance services.

The core message centers on financial inclusion and women's empowerment, aiming to foster income-generating activities for its clients. This distinct positioning resonates with a target audience seeking financial independence and upliftment.

With a network of 1,398 branches across 22 states and 3 Union Territories as of Q1 FY25, the company demonstrates deep penetration into underserved communities. This widespread physical presence reinforces accessibility and direct engagement, fostering trust.

The brand appeals to its target audience through the value and impact it delivers, focusing on supporting income-generating activities and promoting sustainable financial behaviors. This is its unique selling proposition.

Fusion Microfinance's ongoing branch expansion is a key 'campaign' for increasing accessibility. In FY24, 211 branches were added, totaling 1,297, with an additional 101 branches opened in Q1 FY25, reaching 1,398. This expansion into rural and semi-urban areas across 22 states and 3 Union Territories aims to reach more underserved women, as seen by an 8.44% annual increase in active borrowers to approximately 39.5 lakhs in Q1 FY25.

Addressing asset quality challenges is a critical 'campaign' for 2024-2025. Following a rise in GNPA to 5.46% in Q1 FY25, stricter credit criteria were implemented, and collection mechanisms were enhanced. This involved pausing disbursements in 104 branches and adjusting incentives to focus on collections, aiming to stabilize the loan book and mitigate risk.

CSR programs act as impactful campaigns, enhancing brand visibility and credibility. The 'Hariyali' (Plantation) program in Punjab saw 6,000 saplings planted. Additionally, a 'Digital & Skill Development' program trained 100 youths in the BFSI sector, with 56% securing placements, aligning with the company's mission of empowerment.