Microfinance company, Janalakshmi Financial Services (JFS), which recently received a licence to set-up a small finance bank, has raised ₹1,030 crore from a clutch of investors led by TPG, a global firm with about $73 billion of assets under management.
Other investors include Morgan Stanley, Treeline, QRG Enterprises, Vallabh Bhansali, Bajaj Allianz Life Insurance Company and Bajaj Allianz General Insurance Company, according to a statement issued by Janalakshmi on Monday.
The current round of funding is a crucial step in enabling JFS to complete its transition to a small finance bank, according to the statement.
“Although there were disruptions for JFS and the microfinance 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 small finance bank and resume its growth,” it stated.
The company plans to have a national presence with nearly 300 store fronts by 2018. JFS will continue serving its core client base of more than five million customers and offer services through the small finance bank beyond the scope of microfinance, according to the statement.
Janalakshmi aims to expand its reach unbanked segments of the society with financial tools such as savings accounts, the ability to engage in cashless transactions and innovative financial products, it said.
The firm offers micro loans to women, small and marginal farmers and the urban poor for home improvement and education, among other things. It currently has a network of 462 branches across the country in 17 states and two union territories.