Janalakshmi Financial Services raises Rs. 1030 crores as it prepares to become a Small Finance Bank (SFB)

The current round of funding is a crucial step in enabling JFS to complete its transition into a SFB, read a statement issued by the JFS.

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 are new investors in JFS.

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

With  fresh capital and the support of both current and new investors, JFS expects to launch the SFB and resume its growth.

Current plans are for the SFB to have a national presence with nearly 300 store fronts by 2018.  JFS will continue serving its core client base of 5 million+ customers and offer services through the SFB 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.

Ramesh Ramanathan, Chairman, Janalakshmi Financial Services said “Janalakshmi has been championing financial inclusion and with this latest round of capital infusion, it strengthens our ability to continue our inclusion agenda.”

Ajay Kanwal, CEO, Janalakshmi Financial Services added “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.”