Janalakshmi Financial Services (JFS), the country’s largest microfinance company in loan outstanding, has raised Rs 1,030 crore of equity from existing shareholder TPG and Treeline Investment Management in the run up to its transition into a small finance bank.
Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance Company have also come in as new investors.
TPG is leading the current round and investing a significant amount that includes a structured portion at the holding company level, Janalakshmi said in a statement. Other investors participating in this round are Morgan Stanley Asia managed PE fund (NHPEA), QRG Enterprises and Vallabh Bhansali.
“JFS 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, chief executive of Janalakshmi was quoted as saying in a statement.
ET had in its June 19 edition reported that Janalakshmi was looking to raise Rs 1000-1200 crore of fresh equity
“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,” the company said.
