Small finance bank licensee Disha’s parent raises Rs500 crore
Mumbai: Fincare Business Services Ltd (Fincare), a financial inclusion platform, on Tuesday announced that it has closed a Rs500 crore transaction with investments from private equity investors TA Associates, True North, Tata Opportunities Fund and LeapFrog Investments.
Fincare is an umbrella holding company, which manages financial services businesses that provide microfinance loans, micro-enterprise loans and bank partnership loans to emerging consumers at the base of the pyramid via its companies: Disha Microfin Ltd, Future Financial Services Pvt. Ltd and Lok Management Services Pvt. Ltd.
Disha Microfin, an erstwhile microfinance institution, is in the process of setting up a small finance bank, which is expected to start operations in April, Mint reported in December.
The transaction, which involves both primary and secondary components, also saw the participation of investors such as SIDBI, Kotak Mahindra Old Mutual Life Insurance Ltd and Edelweiss Tokio Life Insurance.
The company did not disclose the quantum of primary and secondary components and other financial details. Indium, a fund of India Value Fund Advisors (now known as True North) and an investor in Fincare group of companies since 2010, will remain a shareholder in the platform. Indium owned close to 74% stake in Fincare Business Services prior to the transaction.
- Financial Inclusion