Janalakshmi Financial Services (JFS), India’s largest microfinance company which recently received the final license to set-up a small finance bank (SFB), has raised new equity capital of INR 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 microfinance 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.