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Jacob Ballas pumps $38m into Religare Finvest

  • Susannah Birkwood
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Jacob Ballas Capital India has given Religare Finvest, the non-banking arm of Indian financial services group Religare Enterprises, a INR2 billion ($37.5 million) cash injection.

The new capital will take the form of compulsory convertible preference shares and comes hot on the heels of fellow private equity firm Avigo Capital's investment in the company last November.

Investing via its Jacob Ballas Fund, the latest backer will hold a 5% stake in the Religare unit, which was valued through the deal at INR 40 billion.

Shachindra Nath, group CEO of Religare Enterprises, said: "This investment is not only an external endorsement of the operating model but also demonstrates that despite macro headwinds in challenging times there are value seeking investors for fundamentally strong business models."

A non-bank financial company, Religare Finvest provides debt capital to micro, small and medium enterprises in form of loans against property, working capital loans, loans against plants and machinery, vehicles and construction equipment, and loans against marketable securities.

In November 2011, Avigo Capital invested INR1.5 billion in the firm, in a transaction which also took the form of convertible preference shares.

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