Janalakshmi Financial Services (JFS), Bengaluru-based microfinance company which will morph into a small finance bank (SFB), has raised new equity capital of Rs 1,030 crores.
Private equity player TPG is leading the current round of equity funding by investing a significant amount. 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.
Ajay Kanwal, chief executive, JFS said the current round of funding is a crucial step in enabling JFS to complete its transition into an SFB. It is expected to commence operations in November-December 2017.
“Although there were disruptions for JFS and the Micro Finance industry earlier in the year, business has stabilised. With fresh capital and the support of both current and new investors, JFS expects to launch the SFB and resume its growth,” JFS said in a statement.
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 plus customers and offer services through the SFB beyond the scope of microfinance.
It currently has a network of 462 branches across the country in 17 states and 2 union territories.