Fusion Finance Limited (NSE: FUSION, BSE: 543652), a microfinance company, is making strategic moves to revitalize its business after facing challenges in recent quarters. The company has announced key leadership changes and a shift in focus towards micro, small, and medium enterprises (MSMEs) as part of its turnaround strategy.

New Leadership to Drive MSME Growth

Fusion Finance has appointed Mr. Jitender Sharma as Deputy Chief Operating Officer - MSME Business, effective August 11, 2025. Mr. Sharma brings over 17 years of experience in the banking and finance sector, with expertise in home finance and Loan Against Property (LAP). This appointment aligns with the company's plans to increase its MSME lending share.

Strategic Shift and Financial Performance

CEO Sanjay Garyali has outlined plans to boost the company's MSME lending share from the current 8% to 18-20% over the next two years. This strategic shift aims to reduce concentration risk and diversify the company's loan portfolio.

The company's recent financial performance highlights the need for this strategic pivot:

Signs of Improvement

Despite the challenges, there are positive indicators:

• Collection efficiency improved to 98.60% from 96.60% nine months earlier.
• 44% of the AUM comprises new loans with an average life of 6 months, showing better repayment records.

Looking Ahead

Garyali expressed optimism about the company's future, stating that declining credit costs in the second quarter are expected to move Fusion Finance closer to profitability. The company is targeting a turnaround from the third quarter, leveraging its new focus on MSME lending and improved operational efficiency.

Investor Communication

Fusion Finance recently held its Q1 FY25-26 Earnings Conference Call on August 11, 2025, to discuss the unaudited financial results for the quarter ended June 30, 2025. The audio recording of the call has been made available on the company's website, demonstrating transparency in its communications with investors and stakeholders.

As Fusion Finance navigates through this transitional period, the market will be watching closely to see if the new strategy and leadership changes can successfully steer the company back to profitability.

Fusion Finance Limited (NSE: FUSION, BSE: 543652) has announced a significant addition to its leadership team, appointing Jitender Sharma as Deputy Chief Operating Officer for its MSME Business division. The appointment, effective August 11, 2025, marks a strategic move to strengthen the company's position in the micro, small, and medium enterprise sector.

Leadership Enhancement

Jitender Sharma brings over 17 years of extensive experience in the banking and finance sector to Fusion Finance. His expertise lies particularly in home finance and Loan Against Property (LAP), areas crucial for the MSME segment. The company's decision to bring Sharma on board aligns with its focus on enhancing its MSME business operations.

Professional Background

Prior to joining Fusion Finance, Sharma held the position of Executive Vice President at Kotak Mahindra Bank. His career spans across various aspects of financial services, including:

• Housing finance sales
• Credit operations
• LAP portfolios management
• Experience across multiple geographies

Sharma's journey in the financial sector began with a role in statutory audit, where he handled assignments for reputed organizations. This foundation in audit provided him with a strong understanding of financial processes before he transitioned into senior banking leadership roles.

Strategic Implications

The appointment of Sharma as Deputy COO for MSME Business is expected to bring fresh perspectives and strategies to Fusion Finance's operations in this crucial sector. His extensive experience in home finance and LAP could potentially lead to new product offerings or refinements in existing services tailored for MSME clients.

Corporate Governance

In compliance with regulatory requirements, Fusion Finance has disclosed this appointment under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided detailed information about Sharma's appointment to both the National Stock Exchange of India Limited and BSE Limited.

Recent Financial Performance

While the focus of this announcement is on the new leadership appointment, it's worth noting that Fusion Finance recently held its Q1 FY25-26 Earnings Conference Call on August 11, 2025. The call, which discussed the company's unaudited financial results for the quarter ended June 30, 2025, indicates the company's commitment to transparent communication with its investors and stakeholders.

As Fusion Finance continues to evolve its leadership structure and business strategies, the appointment of Jitender Sharma signals the company's intent to strengthen its position in the competitive MSME financing landscape. Stakeholders will likely be watching closely to see how this new addition to the executive team influences the company's performance and strategic direction in the coming quarters.