Janalakshmi Financial Services (JFS), the microfinance company which recently received the final licence to set up a small finance bank (SFB), has raised Rs 1,030 crore.
The current round of capital-raising is a crucial step in enabling JFS to complete its transition into a small finance bank, the micro lender said.
“TPG is leading the current round and investing a significant amount that includes a structured portion at the holding company level. Other current investors participating in this round are Morgan Stanley Asia managed PE fund (NHPEA), Treeline, QRG Enterprises Limited and Vallabh Bhansali. Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited,” the company said in a statement.
With fresh capital, JFS expects to launch the small finance bank with a target of nearly 300 store fronts by 2018 across the country.
It currently has a network of 462 branches across the country in 17 states and 2 union territories.
Currently, JFS offers micro loans to women, small and marginal farmers and the urban poor for home improvement and education, among other things.
“JFS will continue serving its core client base of 5 million plus customers and offer services through the small finance bank beyond the scope of microfinance. Importantly, JFS aims to expand its reach and empower unbanked segments of the society with financial tools such as savings accounts, the ability to engage in cashless transactions and innovative financial products.
Ramesh Ramanathan, Chairman, Janalakshmi Financial Services said, “Janalakshmi has been championing financial inclusion and with this latest round of capital infusion, it strengthens our ability to continue our inclusion agenda.”
Ajay Kanwal, CEO, Janalakshmi Financial Services, added “JFS is the largest microfinance player and remains committed to serve the underserved as it transitions to being a small finance bank. The investment in JFS by existing and new investors is a strong sign of their faith in JFS’s business model and future.”
Janalakshmi is one of the 10 entities that got a licence to set up a small finance bank.
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