Bengaluru-based microfinance company Janalakshmi Financial Services has raised Rs 1,030 crore from private equity investors and will use the money to set up a small finance bank.
TPG is leading the current funding round, the company said in a media statement, while the other investors are Morgan Stanley Asia managed PE fund (NHPEA), Treeline, QRG Enterprises Ltd. and Vallabh Bhansali, Bajaj Allianz Life Insurance Company Ltd. and Bajaj Allianz General Insurance Company Ltd. are new investors in JFS.
“The current round of funding is a crucial step in enabling JFS to complete its transition into a SFB,” said the release. The microfinance company recently received the final licence to set up a small finance bank.
Janalakshmi aims to have national presence with 300 storefronts by 2018, the media statement added.
Ramesh Ramanathan, chairman of Janalakshmi Financial, said that the latest round of capital infusion strengthens the company’s ability to “continue its inclusion agenda”.
The investment in JFS by existing and new investors is a strong sign of their faith in JFS’s business model and future.Ajay Kanwal, CEO, Janalakshmi Financial Services
Janalakshmi offers micro loans to women, small and marginal farmers and the urban poor for home improvement and education, among others. The firm says it has a network a network of 462 branches in the country.