Janalakshmi to lead investor rush into India’s microfinance sector
Thursday, September 25, 2014
Janalakshmi Financial Services, a non-banking financial company (NBFC) focused on the urban under-served, is expected to lead the rush of private equity (PE) funds into India’s microfinance sector, signalling a strong recovery. According to sources, global PE major TPG is among the two global PE funds that are in advanced discussions with the Bangalore-based firm to invest about $100 million with an existing investor.
As and when Janalakshmi, started by social entrepreneur Ramesh Ramanathan, sews up the transaction, it will mark India’s largest PE funding in the microfinance sector, which was recently hit by a major crisis in Andhra Pradesh (AP). Last year, Janalakshmi had raised a record Rs 325 crore; the funding round was led by Morgan Stanley.