IFMR Holdings, a leading financial inclusion platform in India, today announced raising $25 million (about Rs. 162 crore) in equity from Accion, LeapFrog Investments and Lok Capital.
The new capital will allow IFMR Holdings to increase its footprint across India. IFMR Holdings invests in, and operates financial institutions in India so that individuals and enterprise have access to financial services.
Speaking on the investments, Bindu Ananth, Chair of IFMR Trust, the promoters of IFMR Holdings, said, “This comes at an important inflection point for IFMR Holdings. Against the backdrop of a very favourable policy environment for financial inclusion, we are accelerating growth across all our businesses. We intend being at the forefront of business models combining scale and high-quality financial services for many millions of Indians.”
“IFMR Holdings is a pioneer and leader in the world of financial inclusion,” said Accion CEO and President Michael Schlein. “They are tackling some of the most important issues facing India today by reaching millions of financially excluded households and enterprises, especially in extremely rural areas not served by the banking system. As a result, more people are able to create and grow businesses, insure themselves and their families, and build better lives. We share their vision and are thrilled to be their partner.”
Accion is investing $12.5 million of the total, LeapFrog Investments $9 million and Lok Capital $3.5 million.
IFMR Holdings serves financially excluded households and enterprises through three businesses: IFMR Capital – a debt capital markets platform for 75 originators offering micro-loans, small business finance, affordable housing and commercial vehicles finance, and reaching over 15million financially excluded people; IFMR Rural Finance – a technology licensor that developed the Kshetriya Gramin Financial Services (KGFS) model for remote rural markets; and IFMR Rural Channels – a credit, insurance and pensions provider to over 600,000 clients through 242 branches in rural areas.
