International Finance Corporation (IFC), the investment arm of the World Bank, is looking to invest a total of INR1.5bn ($28m) in Indian microfinance institutions (MFI) Equitas Holdings and Ujjivan Financial Services.
Chennai-based Equitas recently restructured itself as the holding firm for three separate divisions, comprising microfinance, used commercial vehicle financing and affordable housing. The company has around 350 branches across eight Indian states
IFC is planning to inject INR1bn into the business to help finance geographical expansion, scaling up new businesses and meeting its regulatory capital adequacy requirements over the next three to five years.
A further INR500m investment in Bangalore-based Ujjivan, which operates a network of 302 branches in 20 states across the country, follows an investment in February led by Wolfensohn Capital Partners and FMO.
IFC has made previous investments in Indian MFIs including Bandhan Financial Services, Swadhaar Finserv and Utkarsh Micro Finance.
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