UK government arm pumps Rs 1,000 crore into IIFL Finance

MUMBAI: The UK government's development finance unit, CDC, which has invested more than $1billion in India, will infuse Rs 1,000 crore into mortgage provider IIFL Finance to boost people's access to affordable housing. The investment will be made through compulsorily convertible preference shares, said IIFL Finance, adding that on conversion, CDC will hold a 15% stake in the non-banking finance company.

CDC's investment will help IIFL Finance to expand its business and address the capital needs of under-served segments through diversified offerings. IIFL Finance focuses on smallticket loans to under-served geographies and segments, somet hing that resonates with CDC's investment objective. CDC has backed Ratnakar Bank, Janalakshmi Finance and Equitaas, among others. "CDC was the first private equity investor in IIFL during our startup phase in 1999. We are excited to have them back as a partner," said founder Nirmal Jain.

Srinivasan Nagarajan, head (South Asia) at CDC, said, "The new investment will help IIFL Finance grow, with a focus on affordable housing and microand SME-financing."

Besides home, gold and auto loans, IIFL Finance offers products like healthcare and capital market finance and SME business loans.