Leapfrog invests $29 million in IFMR Capital Finance

Monday, March 31, 2014

US-based Leapfrog Investment has bought a minority stake in financial services provider IFMR Capital Finance for $29 million (Rs 174 crore).

IFMR helps microfinance firms, small businesses, affordable housing companies and commercial vehicle financiers raise money on the debt markets.

The non-banking finance company raises debt financing for these companies in these segments through a variety of instruments, including securitisation, collateralised debt obligations (CDOs) and loan guarantees which are then traded on debt capital markets.

“We act as a bridge between high quality debt issuers in the financial inclusion space and capital markets,” said Kshama Fernandes, chief executive officer of IFMR Capital, which was founded in 2008 and has executed about 150 transactions. The company has been promoted by IFMR Trust, which will remain the majority shareholder after the deal.

Source: Economic Times (link opens in a new window)

impact investing, microfinance