Microfinance brand Janalakshmi Financial Services is all set to unveil its Small Finance Bank (SFB) and has also raised Rs 1,030 crore prior to the launch.
As per the firm, the ongoing round of fund raising is very crucial as it will assist in enabling JFS to transit into a small finance bank.
“TPG is leading the current round and 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,” said Janalakshmi Financial Services, in its official communique.
With the newly raised fund, the micro lender is expecting to launch the SFB at 300 store fronts by 2018 across the country.
As of now, it operates through 462 branches across the country in 17 states and 2 union territories.
JFS offers a wide range of micro loans comprising of women, small and marginal farmers and the urban poor for home improvement and education, and much more.
“JFS will continue serving its core client base of 5 million plus customers and offer services through the small finance bank beyond the scope of microfinance. Importantly, JFS aims to expand its reach and empower 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.
“Janalakshmi has been championing financial inclusion and with this latest round of capital infusion, it strengthens our ability to continue our inclusion agenda,” said Ramesh Ramanathan, Chairman, Janalakshmi Financial Services.
“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.
Janalakshmi is one of the 10 entities that was approved the Reserve Bank of India (RBI) to set up a small finance bank.