The State Bank of Pakistan (SBP) granted final approval to TPL Corp and Abhi to acquire a substantial 94.8% stake in FINCA Microfinance Bank Limited, announced the TPL Corp in a notice to the Pakistan Stock Exchange (PSX) on November 12.
The move is expected to boost Pakistan’s microfinance sector and open further investment opportunities for other Microfinance Banks (MFBs) seeking capital.
“In continuation to our earlier announcements dated April 29, 2024, and September 20, 2024, the SBP has conveyed its final approval to TPL Corp Limited (TPL) and Abhi (Private) Limited (Abhi) for the acquisition of up to 94.8% shareholding in FINCA Microfinance Bank Limited,” read the notice.
TPL highlighted that the acquisition process will adhere to all relevant laws, regulations, and SBP conditions. “TPL and Abhi are in the process of completing all the requirements relating to the successful consummation of the acquisition,” added the statement.
“FINCA Pakistan delivered on its promise to develop a nationwide microfinance network that is creating economic opportunity throughout Pakistan, especially for women,” said Jeff Smith, Chair of the FINCA Pakistan Board of Directors. “Abhi and TPL share FINCA’s commitment to expanding access to financial services for small entrepreneurs. The infusion of new capital and more comprehensive digital services have the potential to significantly accelerate financial inclusion in Pakistan.”
Omair Ansari, CEO & Co-founder of Abhi, echoed this vision, adding that the collaboration would deliver impactful financial products to millions of underserved Pakistanis.
“At Abhi, we’ve always believed in creating accessible financial solutions for everyone,” said Omair Ansari CEO & Co-founder of Abhi. “By joining forces with TPL, we’re making a stride towards expanding our reach and delivering impactful financial products to millions of Pakistanis who have previously lacked access to essential services.”
Economist Dr. Shahid Hassan Siddiqui remarked that FINCA had faced financial struggles due to management issues, noting that SBP’s delayed approval presents an opportunity for growth. With the right expertise and skilled staff, he said, MFBs could become profitable, benefiting small clients and Pakistan’s economy.
Pakistan Microfinance Network CEO Syed Mohsin Ahmed also endorsed the acquisition, noting it could pave the way for equity injections into other MFBs.
Pakistan Fintech Network CEO Fahad Sajjad commended the partnership between TPL and Abhi, calling it a “perfect match” of innovation and capital. TPL, with its diverse business experience, and Abhi, as a pure fintech company, are well-positioned to bring digital lending solutions that promote financial inclusion, he said.
FINCA Microfinance Bank customers will experience a seamless transition, with enhanced access to a more comprehensive suite of financial services soon. The acquisition will allow customers to benefit from Abhi’s digital-first platform, aimed at making banking services more accessible.
Over the past decade, FINCA Pakistan has empowered millions of families through lending, savings, and financial education. Known for excellence in customer experience, it introduced Pakistan’s first mobile network-agnostic digital wallet. With a presence in 100+ cities, FINCA has made significant strides in supporting women entrepreneurs.