New Delhi [India], Sept 11 (ANI): Janalakshmi Financial Services (JFS), a microfinance company which recently received the final licence to set-up a small finance bank (SFB) raised new equity capital worth Rs. 1030 crores. The current round of funding is a crucial step in enabling JFS to complete its transition into a SFB.
TPG is leading the current round and investing a significant amount that includes a structured portion at the holding company level. Other current investors participating in this round are Morgan Stanley Asia managed PE fund (NHPEA), Treeline, QRG Enterprises Limited and Vallabh Bhansali. Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are new investors in JFS.
Although there were disruptions for JFS and the MFI industry earlier in the year, business has stabilized. With fresh capital and the support of both current and new investors, JFS expects to launch the SFB and resume its growth. Current plans are for the SFB to have a national presence with nearly 300 store fronts by 2018.
JFS will continue serving its core client base of five million customers and offer services through the SFB beyond the scope of microfinance. Importantly, JFS aims to expand its reach and empower unbanked segments of the society with financial tools such as savings accounts, the ability to engage in cashless transactions and innovative financial products.
"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," said Ajay Kanwal, CEO, Janalakshmi Financial Services.
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 two union territories. (ANI)