💥 “Fusion Finance Lost ₹1,225 Cr in FY25 – Microfinance or Microburn?”

🧠 At a Glance

Fusion Finance — a once-hyped NBFC-MFI — has turned into a loss-making horror story. FY25 saw a net loss of ₹1,225 Cr, qualified audit opinion, GNPA rising to 12.6%, and a P/BV of 1.84x. Promoters dumped 13% stake, and raised ₹800 Cr via a desperate rights issue. Everything that could go wrong… kinda did.

1. 🎬 Introduction with Hook

What do you get when you mix:

• ₹2,579 Cr market cap
• ₹1,225 Cr net loss in FY25
• Rights issue at fire-sale valuation
• GNPA of 12.6%
• Promoter exit
• SEVERE audit red flags

You get Fusion Finance Ltd — the microfinance NBFC that’s now giving max distress.

2. 🧵 WTF Do They Even Do? (Business Model)

• Core biz: JLG (Joint Liability Group) microloans to rural women in groups of 5–7
• Loan size: ₹25K–₹1L
• Tenure: 17–25 months
• Repayment: every 14–28 days
• Interest rates: 19.15–23.4% (reducing balance)

Also does:

• MSME lending, for small biz
• Productivity-linked loans (mobile phones, cycles etc.)

Distribution-led model with field agents, door-to-door collections, and last-mile credit delivery.

📉 But the repayment culture seems to have… well, vanished in FY25.

3. 📊 Financials – Profit, Margins, ROE, Growth

From profitable to panic-mode in 12 months.

4. 📈