Microfinance company Janalakshmi Financial Services (JFS), which received licence to set-up a small finance bank (SFB), has raised new equity capital of Rs1,030 crore.
TPG is leading the current round and investing a significant amount that includes a structured portion at the holding company level. The current round of funding is a crucial step in enabling JFS to complete its transition into an SFB.
Other investors in this round are Morgan Stanley Asia managed PE fund (NHPEA), Treeline, QRG Enterprises Limited and individual Vallabh Bhansali. Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are new investors in JFS.
''Janalakshmi has been championing financial inclusion and with this latest round of capital infusion, it strengthens our ability to continue our inclusion agenda,'' Ramesh Ramanathan, Chairman, Janalakshmi Financial Services said.
The company is looking at setting up the SFB with a national presence and 300 store fronts by 2018.
''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,'' Ajay Kanwal, CEO, Janalakshmi Financial Services said.
JFS takes banking to the unbanked by offering micro loans to women, small and marginal farmers and the urban poor for home improvement and education, among other things. It currently has a network of 462 branches across the country in 17 states and 2 union territories.