Mahindra & Mahindra Financial Services has raised $100m in funding from IFC, a member of the World Bank Group.
The investment will be made through secured nonconvertible debentures.
India-based Mahindra is a lending platform for the rural and semi-urban non-banking finance industry. The lender provides the under-banked with access to vehicle, personal, home and SME loans. It currently has over 5.3 million customers and an AUM of more than $8.49bn.
This capital injection will be used to further its growth, by extending loans to individuals such as empowering farmers to buy tractors, vehicles and other equipment. It will also be used to help financing small and medium enterprises.
IFC chief investment officer Arun Kumar Sharma said, “To make a significant impact in the agriculture sector, we need to provide patient capital and deliver climate-smart solutions. Mahindra Finance brings the scale and expertise, and we aim to develop agribusiness solutions focused on women.”
Earlier in the year, IFC led the $22m Series C round of insurance broker Coverfox, to support the geographical expansion of the platform. The company works with 25 insurance providers to offer consumers more than 100 policies to choose from, with tools available to identify the best fit.
Last year, India’s FinTech space was dominated by the payments are remittances sector, according to data by FinTech Global. The country’s FinTech companies raised a total of $7.3bn, of which, around 84 per cent was deployed to businesses operating in the payments sector.
Copyright © 2018 FinTech Global
