Janalakshmi, The Largest Microfinance Institution in India, Announces $210M Equity Round
Monday, April 18, 2016
Janalakshmi Financial Services Limited (“Janalakshmi”) today announced a $150 million (INR 10 billion) round of primary equity financing led by global private investment firm TPG. In addition, secondary transactions aggregating $60 million (INR 4 billion) will provide partial exits to existing investors.
TPG’s investment adds to the 2014 investment it made in Janalakshmi. Existing investors, including an investment fund managed by Morgan Stanley Private Equity Asia, Havells India, and Vallabh Bhansali, also participated in the round alongside new investors.
Janalakshmi is the largest and fastest-growing microfinance institution in India and is among the country’s largest issuers of pre-paid cards and micro-pensions. The company began in 2000 as India’s first urban microfinance program. After a six-year period, Janalakshmi was established as a standalone, purpose-driven, for-profit institution focused on improving the lives of the urban poor. Now, Janalakshmi is represented in more than 184 cities across 19 states and has an AUM of approximately $1.65 billion (INR 10.5 billion).
Janalakshmi’s core product is Small Batch (SB) loans disbursed to Joint Liability Groups. The microfinance institution also provides individual loans to those who have demonstrated a successful credit track record as borrowers under the SB format, as well as loans to micro and small and medium enterprises (MSMEs). Janalakshmi’s promoter is the Jana Urban Foundation, a Section 8 company that undertakes activities to deepen understanding of the challenges around financial inclusion. The Jana Urban Foundation also addresses issues via education, skill development, community connectivity, and financial advisory initiatives.