Bangalore microfinance firm Ujjivan to receive $21m funding
Bangalore-based micro lender Ujjivan is set to receive Rs 1.01 billion (USD 21 million) in loans from the Small Industries Development Bank of India (SIDBI) and other state-run and private sector banks, it said in a statement Tuesday.
September 13, 2011 / 18:26 IST
Bangalore-based micro lender Ujjivan is set to receive Rs 1.01 billion (USD 21 million) in loans from the Small Industries Development Bank of India (SIDBI) and other state-run and private sector banks, it said in a statement Tuesday.
The lender, which provided Rs 22 billion in micro loans to more than a million customers as of June 2011, clocked a profit growth of 49% over last year.Earlier, Ujjivan had raised Rs 550 million through two non-convertible debenture issues.Investors in Ujjivan include Sequoia Capital, which is also an investor in SKS Microfinance, the only publicly listed microlender in the country.Ujjivan has no presence in Andhra Pradesh, which approved stringent legislation last October to regulate the industry following complaints about high interest rates, aggressive recovery practices and overextended borrowers.The transaction is the latest in a fresh trickle of funds to the sector, which continues to wait for bank funding to pick up after having suffered a dry spell that has lasted since the Andhra Pradesh ordinance came into effect and disrupted the business of micro lenders, in what was the sector's largest market. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
