Warburg Pincus led the equity round and acquired a minority stake in the company, the Delhi-based firm said in a statement.
"This is one of the biggest equity fundraisings by an NBFC-MFI in the country and is also Warburg Pincus' first investment in the microfinance sector in India," it said.
Creation Investment, an existing investor, also participated in this round. Early investors -- Incofin, NMI, BIO and SIDBI -- have made a successful exit.
"This investment would support our endeavour to develop into one of India's most preferred companies in the financial inclusion space," said Devesh Sachdev, chief executive officer and founder of Fusion Microfinance.
Warburg Pincus Managing Director Narendra Ostawal said Fusion has had a remarkable journey to become a leading microfinance company in a short period.
This fundraising follows an internal round that the company completed in February 2018 and significantly expands Fusion's capital base to support its high organic growth, the release said.
The company also intends to selectively evaluate potential acquisition opportunities and lead the potential consolidation in the industry.
Fusion had an outstanding portfolio of Rs 2,050 crore, as on September 30, serving more than 1.3 million customers in 18 states.
(With inputs from agencies.)