IFC to boost Equitas, Ujjivan MFIs with $28m

Chennai-based Equitas will receive INR1 billion, while Bangalore-based Ujjivan will get INR500 million.

Equitas is already backed by Sequoia Capital, the Small Industries Development Bank of India, Helion Venture Partners, Bellwether, Aavishkaar Goodwell and CLSA Capital Partners. Ujjivan's existing shareholders include Sequoia, Wolfensohn Capital Partners, Lok Capital Group, Bellwether, AW Holdings, Michael and Susan Dell Foundation, India Financial Inclusion Fund, Unitus and Elevar.

The investment is intended to help the institutions meet regulatory capital requirements over the next 3-5 years.

Equitas will receive its cash via an investment in Equitas Holdings, the holding company of Singhivi Investment and Finance. The company, which was founded by P.N. Vasudevan, provides loans to 1.2 million people across five states, including Rajasthan and Madhya Pradesh. It has also recently branched out into the area of affordable housing via Equitas Housing Finance, as well as commercial vehicle financing through Equitas Finance.

Ujjivan, meanwhile, was established by Samit Ghosh, and has a borrower base of about 1.1 million, to which it provides around $140 million in debt.

This news comes after IFC announced in March that it would set up a $100 million debt fund to meet the funding needs of microfinance institutions in emerging economies. The fund, named Micro Finance Initiative for Asia (MIFA), would be funded by IFC, KfW and the German Federal Ministry for Economic Cooperation and Development.

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• Topics
• Expansion
• South Asia
• Financials
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• India
• Growth capital