IFC mulls Rs 150 crore investment in Equitas, Ujjivan

CHENNAI: International Finance Corp (IFC), the private equity arm of the World Bank, is mulling equity investments of Rs 150 crore in two Indian micro-finance institutions - Equitas and Ujjivan Financial Services Private Limited.

In an announcement in its Web site, IFC said it is proposing to invest Rs 100 crore (about $20 million) into Chennai-based Equitas Holdings Private Limited, the holding company Equitas Microfinance. In another announcement, it said it proposes to invest Rs 50 crore ($10 million) for an equity stake in Bangalore-based Ujjivan Financial Services Private Limited

Already, Equitas' list of investors include the likes of SIDBI, Sequoia Capital, Bellwether, Aavishkaar Goodwell and CLSA.

Ujjivan is backed by investors such as Bellwether, AW Holdings, Michael and Susan Dell Foundation, India Financial Inclusion Fund, Unitus, Elevar, Sequoia Capital, Wolfensohn Capital Partners (promoted by former World Bank president James D. Wolfensohn).

IFC said the proposed investment would help these institutions in the process of expansion and also meeting regulatory capital adequacy requirements for the next 3-5 years.