IFC to invest Rs 50 cr in Ujjivan Financial
May 07 2012, 10:59 | By SME Mentor
Ujjivan operates in urban and semi-urban areas providing finance to the poor, especially salaried and self-employed women.
The International Financial Corporation (IFC) is planning to invest Rs 50 crore in Ujjivan Financial Services Ltd, a microfinance company that lends to urban and semi-urban poor, especially salaried and self-employed women.
The funds are for a project that will expand and carry out Ujjivan's strategic and operational changes in order to cope with the changed regulatory and business environment, and meet its regulatory capital adequacy requirements for the next 3-5 years.
Recently, Ujjivan Financial raised $25.5 million by diluting a minority stake in its latest round of PE funding. Netherlands Development Finance Company, Wolfensohn Capital Partners and existing investors participated in this round of fund raising, the company said in a statement.
Earlier in January, Ujjivan raised Rs 29 crore by placing NCDs with US-based Developing World Markets. Promoted by Samit Ghosh, the entity follows a model wherein customers are organised into joint-liability groups. It operates through 299 branches in 20 Indian states.
With close to 3,800 employees, Ujjivan has about 1.1 million members and a loan portfolio equivalent to $140 million.
Private equity investors in Ujjivan Financial Services include Unitus Equity Fund (UEF), Bellwether Microfinance Fund, Michael & Susan Dell Foundation, A W Holdings, Sequoia Capital, Lok Capital, Elevar Equity, India Financial Inclusion Fund and Sidbi.
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