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Last Updated : Dec 02, 2019 04:55 PM IST | Source: PTI

IFC to invest Rs 1,433 cr in Mahindra Finance

The $100 million dedicated to women will be supported by blended finance from the IFC-Goldman Sachs' Women Entrepreneurs Opportunity Facility.

 
 
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World Bank Group arm IFC on December 2 said it has anchored an investment round of $200 million (about Rs 1,433 crore) in Mahindra and Mahindra Financial Services to create a dedicated pool of financing for MSMEs in low-income states. At least $100 million will be earmarked for women-owned micro, small and medium enterprises (MSMEs), according to a release.

"IFC (International Finance Corporation) has invested $75 million from its own account and is mobilising another $125 million as parallel loans," it said.

The $100 million dedicated to women will be supported by blended finance from the IFC-Goldman Sachs' Women Entrepreneurs Opportunity Facility.

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Also, Mahindra Finance has further committed $225 million to this pool, it added.

An IFC study, conducted in 2018, estimates the total credit gap for MSMEs in India to be $397.5 billion, around 15 per cent of gross domestic product. The financing gap for MSMEs is more acute in low-income states. Targeted lending to women-owned MSMEs is even less prevalent.

In the financial year 2018-19, IFC delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

Mahindra & Mahindra Financial Services Ltd, part of the Mahindra Group, has over 6.4 million customers and an assets under management of over $10 billion.

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First Published on Dec 2, 2019 04:40 pm
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