Janalakshmi Financial Services raises new round of capital from PE players

MUMBAI: Janalakshmi Financial Services (JFS), India's largest microfinance company which recently received the final licence to set-up a small finance bank ( SFB), has raised new equity capital of Rs 1030 crores from private equity firms led by TPG.

The current round of funding is a crucial step in enabling JFS to complete its transition into a SFB, the financial institution told in a press statement.

TPG is investing a significant amount that includes a structured portion at the holding company level. Other current investors participating in this round are Morgan Stanley Asia managed PE fund ( NHPEA), Treeline, QRG Enterprises Limited and Vallabh Bhansali. Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are new investors in JFS.

"Although there were disruptions for JFS and the MFI industry earlier in the year, business has stabilized", JFS said.

"JFS is the largest microfinance player and remains committed to serve the underserved as it transitions to being a small finance bank. The investment in JFS by existing and new investors is a strong sign of their faith in JFS’s business model and future," said Ajay Kanwal, CEO, Janalakshmi Financial Services added

JFS currently has a network of 462 branches across the country in 17 states and 2 union territories.