Janalakshmi Financial Services has secured around $161m (INR 1030 crores) in its latest funding round led by TPG.
Other investors to the round included existing backers Morgan Stanley Asia, Treeline, QRG Enterprises Limited and Vallabh Bhansali. Also taking part in the investment were new relationships Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance.
India-based Janalakshmi is a microfinance platform which helps the underbanked by offering micro-loans to women, small and marginal farmers and the urban poor to help with home improvement and education, among other uses. The company currently has 462 branches across 17 states and two union territories.
Janalakshmi has recently received an operating license to set up as a small finance bank, with the company aiming to have a national presence with almost 300 store fronts by 2018. The company will continue to support its existing customers, but will also offer services through its SFB platform which go past micro-finance. New offerings include saving accounts, cashless transactions and new financial products.
The funding will be used to help support the company’s attempt for financial inclusion by expanding its reach and aid its transition to set up as a SFB.
Janalakshmi Financial Services CEO Ajay Kanwal said, “JFS is the largest microfinance player and remains committed to serve the underserved as it transitions to being a small finance bank.”
Total capital raised by Janalakshmi has reached up to $538m, with the company nabbing $210m in a funding round led by TPG last year.
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